Policies on green transition must be just, and must promote social and economic equity, the Malaysian ministry of international trade and industry said, Bernama has reported.

Governments around the world are grappling with the challenge of striking a balance between supporting inclusive economic development and growth, ensuring secure and reliable energy access and promoting environmental sustainability, said the minister of international trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

“MITI is committed to drive efforts to attract more electric vehicle investments and to meet the national target of 15% total industry volume (TIV) for EVs and hybrid vehicles by 2030, and 38% of TIV by 2040,” the minister said at the signing of a joint venture agreement between Energy Absolute Thailand and Computer Forms Malaysia.

“It is important that governments collaborate to align legal and regulatory frameworks in order to promote investments auch as the joint venture between CFM and EA. The combination of renewable energy and greening public transportation will encourage inclusive economic growth that will benefit both Thailand and Malaysia,” Zafrul said.

The joint venture agreement signed last week was for the construction of Malaysia’s first EV manufacturing plant for public transportation which will be worth RM5 billion, the minister of international trade and industry said. This will be for the production of public transport vehicles as well as for CFM and Energy Absolute to transfer innovation, renewable energy experience and carbon credits to the Malaysian government.