Malaysia’s Renewable Energy and Green Technology Sectors Poised for Significant Growth: Allianz SE

Malaysia’s renewable energy and green technology sectors are expected to experience robust growth due to the global green transition, according to Allianz SE chief economist Ludovic Subran. Industries such as solar energy, sustainable manufacturing, and green tech innovation are seeing increased demand as global supply chains seek cleaner energy sources. Subran highlighted that Malaysia’s strong export performance in technology and equipment has bolstered its renewable energy sector, stating, “We are seeing a surge in new export orders for technology and industrial machinery, with the renewable energy market particularly well-positioned to benefit.”

Malaysia’s Economic Growth Outlook

Despite this growth, Subran projected that Malaysia’s GDP growth for 2025 may slow down by 0.5% due to external economic pressures and domestic challenges, including fiscal tightening and a stagnant real estate market. He explained that households are under pressure, and without interest rate cuts, residential real estate prices are not rising quickly, impacting consumption.

Additionally, Subran discussed the ringgit’s performance, predicting fluctuations depending on the outcome of the U.S. presidential election. “If former US president Donald Trump returns to office, the ringgit could depreciate by 5-10% due to a stronger US dollar,” he noted. However, he added that under Kamala Harris, a mild depreciation of around 2-3% is expected.

While Malaysia faces challenges, Subran emphasized the importance of balancing domestic policy adjustments with efforts to strengthen its renewable energy and green technology sectors. “While the immediate outlook may appear challenging, sectors tied to green energy and sustainable technology provide a solid foundation for future growth,” he concluded, stressing the need for strong research and development partnerships and improved incentives for technology investment.

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