Govt to incentivise other growing areas of solar industry in Budget 2022 — Solarvest CEO

KUALA LUMPUR (Oct 11): Ahead of the Budget 2022 announcement later this month, Solarvest Holdings Bhd opined that there will be no more incentives being planned by the government for the current solar industry, according to group chief executive officer (CEO) Davis Chong Chun Shiong. 

Speaking in a virtual meeting on Monday, Chong said, however, the government may incentivise other areas related to solar energy, such as battery storage technology.

“Those industries that I would say are related to the solar industry, which are growing in the next phases, I think that will be the focus for the government to incentivise.

“The other thing is we are seeing more elements inside the 12th Malaysia Plan, for instance electric vehicle mobility. Those are additional growth for us, which we haven’t materialised, which is related to the green technology industry,” he elaborated. 

Meanwhile, on capital expenditure (capex) allocation, the clean energy specialist highlighted that it expects to increase its capex allocation in the future to diversify its business and get involved in some small merger and acquisition activities. 

“The capex allocation for next year will still be the same as what we highlighted for solar asset investment.

“We also are working on a strategic plan for the next five years which will focus not only on solar assets, such as engineering, procurement, construction and commissioning contracts, but beyond that,” he said.

Chong also shared that the group’s outstanding order book currently stood at RM630 million, with the majority of the contracts being from Malaysia. 

“I am not expecting the order book from the Philippines or Taiwan to be higher in the short term but we are looking at some progress to be made on Taiwan’s side, maybe in the few quarters,” he said.

Meanwhile, earlier on Monday, the group launched Solarvest Innovation Lab 2021 — a start-up programme to spur innovation and entrepreneurship development in Malaysia with particular emphasis on renewable energy, green technology and financial technology.

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