Malaysia’s Budget 2027, tabled on 9 October 2026, introduces support for green investment, solar development and energy infrastructure. Here are five developments businesses and consumers should understand.
1. GITA extended until 2030
Budget 2027 has extended the Green Investment Tax Allowance (GITA) until 31 December 2030.
Meanwhile, solar integrated with battery energy storage for a company’s own use could qualify for a tax allowance of up to 100%, with an offset limit of 70% of statutory income.
For EV charging station projects, GITA support will continue until 2030, providing a longer window for eligible investments. However, the allowance will be reduced from 100% to 60%, while the maximum share of statutory income it can offset will decrease from 100% to 70%.
What this means: Eligible solar projects with storage investments could help businesses reduce their tax bill alongside electricity costs.
2. RM1.5 billion for solar serving government buildings
A centralised solar park serving government buildings will be developed with an investment of RM1.5 billion, creating opportunities for construction, engineering and maintenance companies.
What this means: The initiative could generate further demand across solar PV development, installation and ongoing maintenance.
3. LSS6 participation opportunities for Bumiputera companies
Under the Large Scale Solar 6 programme (LSS6), 150MW will be reserved for Bumiputera companies.
What this means: The measure supports broader participation in Malaysia’s large scale solar industry, subject to programme requirements.
4. RM15 billion to strengthen the national grid
TNB will invest RM15 billion to strengthen the national grid and meet growing electricity demand.
What this means: Stronger grid infrastructure can help support renewable energy integration alongside increasing sustainable electricity consumption.
5. Investment in storage, hybrid energy and decarbonisation
An investment of RM1 billion will support energy storage and hybrid energy projects, including initiatives at KLIA and in Johor. Further, KWAP’s RM1 billion Dana Iklim+ will support renewable energy and decarbonisation projects.
What this means: These investments signal potential opportunities in storage, system integration and green project development.
Considering solar energy for your business but unsure how the proposed changes apply?
Our Pekat Solar team is ready to discuss your energy needs and the eligibility considerations for your planned solar investment.
Send your enquiry to [email protected] with your contact details and a brief description of your facility, and our team will help you explore the next steps.