Malaysia's CCUS Development Stalled by Funding and Technology Issues
Malaysia's Ministry of Economy highlights significant funding and technological barriers to advancing carbon capture, utilisation, and storage (CCUS) initiatives. Despite legislative support, the ecosystem is underdeveloped, affecting the country's net-zero emissions target for 2050.

Malaysia is facing challenges in scaling up its carbon capture, utilisation, and storage (CCUS) initiatives due to funding shortages and technological limitations. The government has enacted the CCUS Act 2025 to support the ecosystem, but it is not fully developed.
Significant investment is required, and all components, including financing, technology, and industry support, must align to achieve carbon reduction goals. The Ministry of Economy is pursuing bilateral cooperation with nations such as Japan, Singapore, and South Korea to expedite progress.
Additionally, guidelines are being prepared to ensure that small and medium enterprises (SMEs) can benefit from CCUS, not just large corporations. However, high costs and energy demands associated with CCUS technologies pose major barriers, and the commercial viability of projects depends on market demand for the end products.




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