Malaysia’s CCS Drive Advances National Energy Roadmap

Malaysia’s CCS Drive Advances National Energy Roadmap

Malaysia’s goal of net-zero emissions by 2050 has put carbon capture and storage (CCS) at the forefront of its decarbonisation strategy. National oil company PETRONAS has identified multiple depleted gas fields for CO₂ storage — including the advanced M1 site at the Kasawari gas field — and is actively developing others (e.g., Duyong, Penyu, Lawit). These efforts leverage Malaysia’s favourable geology to capture emissions from both O&G and non-O&G sectors.

These corporate moves align closely with the National Energy Transition Roadmap (NETR), which outlines three CCS hubs by 2030 and a scale-up to 80 million tonnes per annum by 2050. PETRONAS’s partnerships with TotalEnergies, Mitsui, Adnoc, and Storegga, along with transport infrastructure in Kuantan and the world’s first large-scale liquefied CO₂ vessel, position Malaysia as a regional carbon storage hub. The passage of the CCUS Bill and the introduction of a carbon tax in key sectors are accelerating this momentum.

CCS: A Catalyst Across Industries

Beyond heavy industry, CCS is creating ripple effects across Malaysia’s broader economy. Renewable energy developers stand to benefit as CCS enhances grid stability during the energy transition, enabling flexible fossil generation with lower carbon intensity. The construction sector may see new demand for low-carbon building materials and infrastructure retrofits, aligned with green building standards. Utilities and grid operators can integrate CCS as part of hybrid solutions to meet emissions targets while ensuring energy reliability. Even financial services are entering the fold, with transition finance frameworks emerging to support CCS-linked investments. Together, these developments offer a multi-sectoral boost, anchoring CCS not just as a mitigation tool — but as a strategic economic enabler under NETR.

Identify investment opportunities – Phillip Managed Account for Retirement (PMART) and Phillip Managed Account (PMA) ESG

In line with the nation’s goal towards sustainability, Phillip Capital Management has integrated ESG factors that we attest as material and relevant for a company’s financial performance and long-term sustainability into our investment decision-making process. These include but not limited to ESG ratings by established index, environmental considerations (climate change, natural resources preservation, pollution & waste), social considerations (health & safety, community engagement, employee relations) and governance considerations (board independence, transparency & disclosure, shareholder rights).

Separately, PCM offers PMART and PMA ESG, a discretionary portfolio that invests in stocks with high ESG ratings from the F4GBM and F4GBMS Indices. There are both conventional and Shariah options available. PMART and PMA ESG is suitable for investors who want to optimise the risk-adjusted return by constructing a diverse sustainable portfolio of ESG companies. Exhibits 1-4 show the performance for PMART ESG Conventional and Shariah.

Exhibit 1: Phillip PMART ESG Conservative Portfolio Performance

Exhibit 2: Phillip PMART ESG Aggressive Portfolio Performance

Exhibit 3: Phillip PMART ESG Shariah Conservative Portfolio Performance

Exhibit 4: Phillip PMART ESG Shariah Aggressive Portfolio Performance

Source: PCM, 31 May 2025, link

Please click on the link to learn more or email us at cse.my@phillipcapital.com.my if you require any further information.

Disclaimer

The information contained herein does not constitute an offer, invitation, or solicitation to invest in any product or service offered by Phillip Capital Management Sdn Bhd (“PCM”). No part of this document may be reproduced or circulated without prior written consent from PCM. This is not a unit trust or collective investment scheme and is not an obligation of, deposit in, or guaranteed by PCM. All investments carry risks, including the potential loss of principal.

Performance figures presented may reflect model portfolios and may differ from actual client accounts’ performance. Variations  in individual clients’ portfolios against model portfolios and between one client’s portfolio to another can arise due to multiple factors, including (but not limited to) higher relative brokerage costs for smaller portfolios, timing of capital injections or withdrawals, timing of purchases and sales, and mandate change (e.g., Shariah vs. conventional). These differences may impact overall performance.

Past performance is not necessarily indicative of future returns. The value of investments may rise or fall, and returns are not guaranteed. PCM has not considered your investment objectives, financial situation, or particular needs. You are advised to consult a licensed financial adviser before making any investment decisions.

While all reasonable care has been taken to ensure the accuracy and completeness of the information contained herein, no representation or warranty is made, and no liability is accepted for any loss arising directly or indirectly from reliance on this material. This publication has not been reviewed by the Securities Commission Malaysia.