The global warming effect and the health value realisation from the pandemic have highlighted the importance of sustainability and green efforts. This has led many countries to implement green solutions to their lifestyle as more and more people are leaning toward a sustainable lifestyle. Hence, Malaysia is also encouraging developers to build sustainable establishments. There are also green rating agencies ranking these buildings to recognise their green initiative.

Understanding the need of current times, 5 sustainable projects launched in Malaysia in Q1 2022:

1. Rooftop Solar Photovoltaic (PV) panels on Lotus’ Malaysia hypermarkets

   NEFIN Group appoints Solarvest Holdings Bhd to take over an RM20.1 million project. Solarvest will be the solution provider for engineering, procurement, construction and commissioning (EPCC) for a rooftop solar photovoltaic (PV) project in Lotus Malaysia’s hypermarkets.

   In 2021, Solarvest worked on the project’s first phase, where they installed solar PV panels in 15 of Lotus’s Malaysia hypermarkets. So, this will be the second phase of the project where they will install solar panels for another 12 stores and 1 fresh distribution centre for lotus. The project is estimated to be completed by 31 July 2022 as per Solarvest’s bourse filing on 24 March 2022.

   This project’s cumulative capacity of 7.98 megawatts-peak (MWp) will effectively offset 6,633 tonnes of carbon emission annually. That is equivalent to planting 301,000 trees as per Solarvest. Since electricity is one of the highest overhead costs of hypermarkets, solar panels are a timely and sustainable approach for Lotus to curb their cost.

2. Healthcare based sustainable township

   KL Wellness City Sdn Bhd has announced the first one of a kind integrated healthcare based sustainable township in Malaysia on 24 March 2022. The township’s goal is to focus on health, fitness, medical, and wellness to give advanced age treatment to local and international patients.

   Spanning over 10.72 hectares of land, the township will integrate medical, ancillary and support services into one wellness hub to meet its goal. They will build a medical and wellness suite complex with a 360-degree ecosystem. It will serve as the one-stop centre from diagnosis to rehabilitation to treat patients efficiently.
   The construction of the township will be in 2 phases. Once completed, the establishment will include office towers, a retirement resort and wellness serviced apartments. The developer expects this project to have a gross development value (GDV) of more than RM11 billion.

   The first phase of the township will complete in 2025. Once fully functioning, the township is expected to put Malaysia at the top of the map for global healthcare tourists.

3. Sustainable solutions to organisations in Malaysia and Oman

   On 21 March 2022, Lebtech Energy Sdn Bhd, a wholly-owned subsidiary of Lebtech construction company, signed a memorandum of understanding (MOU) with Sustainable Investments Oman LLC (SIO) to provide sustainable solutions to organisations in Malaysia and Oman.

   SIO is a reputed firm in Oman that works in cutting edge technological innovation in the Middle East and North African region. Together with Lebtech, they plan to propose sustainable projects to potential clients.

   Together with SIO’s sustainability knowledge and Lebtech’s construction expertise, they aim to offer knowledge transfer programmes to create public awareness of sustainability. In addition, they will look into ventures that promote net-zero carbon and environmental sustainability.

4. Green Loan

   HSBC Malaysia offered their first green loan to Kerjaya Property Sdn Bhd, a Kerjaya Prospek Property Bhd subsidiary. The money from the loan has gone into developing Kerjaya’s property Bloomvale in Old Klang Road.

   This step of HSBC is to show their support for sustainable and green projects in Malaysia. They have designed this loan to align with Green Loan Principles (GLP) as it is an international standard recognised in the global syndicated local markets.

   The loan has helped Kerjaya fund Bloomsvale’s green initiative and adapts features that will reduce the impact of climate change on the building and sustain it for the longer term. As a recognition of its sustainable features, Bloomsvale has received a Platinum rating under GreenRE’s provisional certification for the residential components. It is also expecting to win a Gold rating for its commercial part.

   To know more about GreenRE, read What is GreenRE and how is it encouraging property developers to go green?

5. Islamic Medium Term Notes (IMTN) Issuance or Green Development

   On 31 March 2022, UOB Malaysia issued RM300 million Islamic Medium Term Notes (IMTN) with 4 years tenure at a fixed rate of 5.1% per annum to EXSIM. The issuance is the third tranche of the RM2 billion Sukuk Musharakah Programme of EXSIM. It will help EXSIM to develop their green residential properties in Klang Valley.

   This capital raising exercise is a financial solution under UOB Sustainable Finance Framework for Green Building Developers and Owners and the UOB Smart City Sustainable Finance Framework.

   It is a way for UOB to promote an environmental, social and governance (ESG) agenda so that more developers come forth to build green and sustainable buildings.

Stay tuned to the Guyub news portal to know more about the green projects in Malaysia.