KUALA LUMPUR: The Malaysian Gas Association has called on the government to strengthen fiscal support and incentives for the natural gas industry in Budget 2026.
MGA identified three immediate priorities for the industry in a statement today.
The association said only with this support can the industry sustain its economic contribution while helping Malaysia accelerate energy transition and safeguard energy security.
MGA president Abdul Aziz Othman said the first priority is reinstating full eligibility for cogeneration systems under the green investment tax allowance.
This would restore alignment with the National Energy Transition Roadmap and support proven energy-efficiency technology.
“The second priority is to strengthen incentives for biogas and biomethane, including capex support and higher tax exemptions for service providers so they can scale as part of Malaysia’s renewable energy mix,“ he said.
“And third, recognise low-carbon marine fuels, including liquefied natural gas bunkering, as a strategic investment sector, backed by structured incentives and a clear regulatory framework to strengthen Malaysia’s ports and competitiveness.”
MGA emphasised the urgency is real, noting that as 2025 ASEAN chair, Malaysia must lead by leveraging existing capabilities.
The association said these strategic investment sectors carry long-term impact in reducing emissions, driving economic spillovers and reinforcing Malaysia’s regional credibility.
“Across ASEAN, countries are already moving ahead based on their respective strengths, from Singapore’s LNG bunkering trials to Vietnam’s rapid renewable energy growth,“ MGA added.
“Malaysia cannot afford to stand still.” – Bernama