Financial planning is all about spotting trends in business. While palm oil is abundant in Malaysia, it creates significant waste making it an increasingly unpopular option. The Island of Borneo is already increasing its use of hydropower, but the year round sun suggests that the solar industry could be set for a boom. With governments looking to invest in renewable energy, it could be one of many smart investments you make this year.
A $17bn project in hydroelectricity in Indonesia began in early 2017. Located in the Kayan river, this project should boost economic growth in the area. With only 33 of the 81 villages in the area having access to 24 hour electricity, the demand for energy is substantial.
Malaysia can use its enormous access to water to generate energy which is cheap and clean. With increased awareness about climate change and a growing demand for sustainability, an investment in hydropower now could mean big gains in decades to come.
In June 2017, Malaysia launched the world’s first Islamic bond for renewable energy. Also known as a sukuk, this bond is available to fund sustainable infrastructure. This is brilliant news for investors because it provides certainty in how funds will be used and has backing from the government that will help ensure positive returns. Furthermore, when it comes to investments, referring to corporate business solutions and tips for ideas can be of great benefit.
The Potential for Solar
Global growth in the solar power industry is expected to be up to 20% in the next five years. The top solar companies are already valued at RM1.4bn and export over 80% of PV products into Europe, the USA and Asia.
The cost of solar is declining rapidly, meaning it is available to more and more customers. There were 83 renewable energy projects in 2016 and this will increase each year for the foreseeable future. The solar ecosystem in Malaysia makes it the ideal place to invest in clean energy.
Malaysia is already a huge provider of green energy, but more investment is being pumped in. With the abundance of sun and water, put your money into solar and hydroelectric power for the greatest return on investments.