Good news to renewable energy developers as the Malaysian government is introducing cheaper loans to companies which provide or practise environmental-friendly technologies.
This new government scheme which is introduced under Budget 2010 will benefit all the biodiesel and biogas plant contractors, oil palm millers who install greenhouse gas (GHG) capture tanks, biodiesel plant owners and any other related parties. During an interview recently at Berjaya Times Kuala Lumpur, Datuk Seri Peter Chin, the Energy, Green Technology and Water Minister reassured everyone that all the suppliers of the environmental-friendly technologies can apply for a maximum of RM 50 million while their clients will be able to borrow up to RM 10 million. The good news will be effective from 1st January 2010 where all the commercial banks in the nation will be involved and informed of this plan. In addition, the government will also bear 2% of the total interest rate and guarantee as much as 60% of the loan. Companies utilising biomass as a fuel for operating their boilers are also eligible to apply for the pioneer status and investment tax allowance (ITA).
Source: Adapted from News Strait Time, 28 October 2009