KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
At MoneyMaster, we believe some of the best investment stories start quietly—just like Malaysia’s utilities sector right now.
This week, national utility Tenaga Nasional signed a landmark deal to supply 500MW of renewable energy to DayOne’s hyperscale data centers in Johor under the Corporate Renewable Energy Supply Scheme (CRESS). It’s a 21-year commitment that brings total green energy contracts under CRESS to around 1.3GW—not bad for a program launched less than a year ago.
Under the Radar: A Market-Driven Green Shift
While the market buzzes about data centers, what’s really unfolding is a structural energy shift. CRESS enables direct power contracts between corporates and renewable developers, ditching slow, quota-based bidding systems for a market-based “willing buyer, willing seller” model.
The result? Faster rollouts. Better project economics. And more confidence for investors.
Here’s what’s already on the board:
Tenaga’s 400MW deal with Bridge Data Centers (Dec 2024)
UEM Lestra’s green power deal with ESR for a 360MW facility
CRESS is doing exactly what it was designed to do: unblock bottlenecks and scale renewables—quickly.
Grid Upgrades = Big Capex = Big Opportunity
A surge in renewable projects means Malaysia’s grid needs to catch up. Enter Tenaga again—with a whopping RM16.3 billion in planned grid-related capex under Regulatory Period 4 (RP4). That’s not just maintenance—it’s an investment cycle.
Pair that with a 4GW pipeline of new solar projects—almost double the capacity launched between 2016 and 2021—and the picture becomes clear: Malaysia’s clean energy ambition is serious, and it’s happening now.
The upcoming BESS (Battery Energy Storage System) tender could unlock even more infrastructure opportunities, especially for engineering and construction players. Early estimates suggest RM15–18 billion in contracts could be up for grabs.
Two Names to Know
1. Tenaga Nasional (KLSE: TNB)
Capex-led earnings growth story
Forward dividend yield rising toward 4.4% by FY27F
Trades at ~13.6x forward P/E—reasonable for a national energy champion pivoting toward renewables
2. Malakoff Corporation (KLSE: MLK)
Gas generation is a key support pillar as DC power demand surges
Greenfield opportunities in the pipeline
Offers a compelling 6.5% dividend yield by FY27F
Final Word from MoneyMaster
Malaysia’s utilities sector is shaking off its old “defensive-only” label. With the National Energy Transition Roadmap (NETR) as a tailwind, this space is now being redefined by policy momentum, private capital, and long-term growth visibility.
If you’re building a portfolio with a mix of yield, resilience, and structural upside, Tenaga and Malakoff could be timely additions to your watchlist.
Comments
Post a Comment