With a direct and active ownership approach, UEM Group aims to improve the domestic economic ecosystem, create a competitive green business, and ultimately generate profits.
UEM Group Berhad (UEM Group, the Company), a fully-owned subsidiary and the green investment platform of Khazanah Nasional Berhad (Khazanah), will adopt a proactive strategy to further develop the green industry in the nation with the goal of creating green domestic champions, advancing Malaysia’s decarbonization agenda, and creating high-quality employment opportunities for Malaysians.
The UEM Group’s objectives for the following five years (2023–2027), under the direction of its recently established and fully owned subsidiary, UEM Lestra Berhad (UEM Lestra), are to strengthen and organically expand the green operations and assets of its other subsidiaries, support competent local green players, and establish strategic alliances, including joint ventures, to carry out projects in these four sectors:
- Renewables and storage infrastructure such as solar farms, mini hydro plants and biogas;
- Integrated energy solutions – green building services, end-to-end energy services such as distributed energy generation technologies and energy efficiency related services;
- Green or electric mobility including electric vehicle charging infrastructure maintenance and services; and
- Waste management and recycling including waste treatment and disposal.
According to Managing Director Dato’ Mohd Izani Ghani, UEM Group, Malaysia’s partner in nation-building, will concentrate on addressing climate change by fostering and expanding green industries like renewable energy, waste management, green infrastructure, and transportation.
With a direct and active ownership approach, UEM Group aims to improve the domestic economic ecosystem, create a competitive green business, and ultimately generate profits.
It has identified a number of competent national and international green energy industry players with an excellent track record and widespread presence who are looking for a strategic investor to help them grow their businesses.
In addition, the Company is currently in talks with several foreign investors who are keen to invest in the development of RE in Malaysia, details of which will be announced before the end of this year (2023).
“We intend to lead the country’s decarbonisation agenda and this includes supporting the Government’s efforts to transition towards sustainable energy solutions and to be a carbon-neutral nation, achieving a 70% RE capacity in the country’s electricity supply by 2050.
Dato’ Mohd Izani emphasized the country’s aim to enhance domestic green capabilities and competitiveness by upskilling and developing local workforce talent. The goal is to create more jobs and provide high-quality employment opportunities.
He continued, “UEM Group will be utilizing the Islamic bond market to finance the Company’s entry into the green industries, and is currently putting in place an RM7 billion Sustainable and Responsible Investment (SRI) sukuk programme from which the proceeds will be used to finance investments to be made by UEM Lestra.
UEM Group, founded in 1966, is responsible for Malaysia’s key infrastructure projects and owns majority stakes in Expressways, Township & Property Development, Engineering & Construction, and Asset & Facility Management. It also manages CIMA and Cement Industries of Malaysia.