KUALA LUMPUR, 21 November 2025 — Malaysia Debt Ventures Bhd (MDV) has approved RM2.26 billion in green technology project financing for more than 148 companies to date, according to Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang.
He said MDV launched a RM2 billion sukuk programme in 2022 to fund technology-based projects and contracts under its mandate, with the sukuk proceeds supporting government-backed green financing initiatives, including the Green Technology Financing Scheme (GTFS).
Expanded Hydrogen Incentives: ITA, GITA, GITE and Tax Exemptions
Chang said the government is expanding several incentives to spur Malaysia’s emerging hydrogen economy. These include:
- Green Investment Tax Allowance (GITA)
- Green Income Tax Exemption (GITE)
- Import duty and tax exemptions for renewable energy equipment, including hydrogen-related systems
A key incentive includes a 100% Investment Tax Allowance (ITA) on hydrogen project capital expenditure for 10 years, deductible up to 100% from statutory income.
He made the announcement during Minister’s Question Time in the Dewan Rakyat, in response to Rodiyah Sapiee (GPS–Batang Sadong), who asked about incentives to accelerate hydrogen development.
Policies to Lower Hydrogen Production Costs
Chang said several policy measures are being evaluated to reduce hydrogen production costs, such as:
- renewable energy tariff packages
- relaxed grid access
- the use of Renewable Energy Certificates (RECs)
- gazettement of dedicated land for hydrogen infrastructure development
Hydrogen Investment Zone Proposal
Responding to a supplementary question, Chang said the proposal to establish a Hydrogen Investment Zone could accelerate economic growth and position Malaysia as a regional hydrogen hub and competitive investment destination in the Asia Pacific.
HETR Working Group to Coordinate National Hydrogen Agenda
Chang said MOSTI has set up a working group to implement incentives under the Hydrogen Economy and Technology Roadmap (HETR).
“It is a platform that coordinates the national hydrogen economy agenda, including engagement with other agencies and ministries such as the Ministry of Finance and the Ministry of Investment, Trade and Industry,” he said.
The working group will formulate a comprehensive incentive package covering:
- specific energy tariffs
- fiscal incentives such as GITA and pioneer status
- import tax exemptions
- infrastructure support
