- 5 months ago
In this interview, Wong Yin Kee, Managing Director of ENGIE Services Malaysia, and Loon Peng Wai, CEO of UAC Berhad, share how their strategic partnership is transforming Malaysia’s industrial landscape. From deploying cutting-edge solar and energy efficiency solutions to aligning with national sustainability goals, this conversation dives deep into the technologies, motivations, and policy frameworks driving Malaysia’s green industrial revolution.
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00:00Thank you for tuning in to Oniaga Awani.
00:17And right now we're in the segment of Awani Green Action,
00:19where Malaysia's industrial sector is undergoing a pivotal transformation
00:23as the nation races toward its carbon neutrality goal by 2050.
00:27And with manufacturing contributing nearly 20% of national greenhouse gas emissions,
00:32partnerships like the one between Energy Services Malaysia and UAC Berhad
00:36are setting new benchmarks for sustainable operations.
00:40And this partnership not only boosts operational efficiency and cost savings,
00:44but also aligns with Malaysia's circular economy policy framework,
00:48which urges manufacturers to rethink fossil fuel-based models and adopt sustainable practices.
00:53And as the country faces a 14.2% electricity tariff height starting July 2025,
01:00the need for energy-efficient and low-carbon solutions has never been more urgent.
01:05So join us as Managing Director, Energy Services Malaysia, Wong Yin Ki,
01:09and Chief Executive Officer, UAC Berhad Lun Pengwai,
01:12to help us unpack how their strategic partnership is transforming Malaysia's industrial landscape.
01:17So let's start the first question to both of you on the collaboration with NG and also UAC Berhad.
01:24So how has NG's partnership with UAC Berhad transformed their industrial operations,
01:30particularly in modernising and also decarbonising utilities infrastructure?
01:33Let's start with Mr Wang.
01:35Maybe I can start with giving a quick background of NG's partnership with UAC.
01:39I mean, for me, it's a real testament of how industrial operations can be transformed to achieve sustainability and efficiency.
01:49And our conversation with UAC, Mr Loon, started way before, probably about 10 years ago,
01:56when we were exploring energy efficiency solutions to modernise their compressors,
02:03so we actually, eventually we delivered about 18% improvement in energy efficiency for the compressors systems.
02:12I think that success in the first pilot project, I would call it,
02:16really paved the way for us to expand the collaboration even further
02:21by deploying more energy efficiency solutions to the other utility systems on site,
02:28including the steam boiler system, where we replaced the ageing medium fuel oil boilers
02:35with cleaner and much more efficient natural gas boilers.
02:39We overhauled the entire steam system, including the infrastructure around it.
02:43And at the same time, we even expanded further to provide green power or access to much more affordable solar power
02:52through a rooftop solar solution deployment in the industrial estate facility.
03:01Collectively, this initiative enabled UAC to significantly bring down the carbon footprint.
03:08I would say it is probably equivalent to the environmental impact of planting more than 200,000 trees a year.
03:16So, this kind of project not only strengthens UAC's image and reputation as an industrial leader in sustainability,
03:24but it also offers long-term cost stability against fluctuation energy prices.
03:32It's a typical example of how NG is empowering local industrial leaders to achieve longer-term goals
03:38when it comes to balancing profitability, sustainability and reliability, right?
03:44All right, thank you.
03:45What about you, Mr. Loon?
03:46What do you think about these partnerships between NG?
03:49So, UAC helped to transform your whole industrial operations?
03:54I think for UAC, I think the main motivation that we...
03:59motivation to embark on a sustainability drive is because at UAC here,
04:03we strongly believe that sustainability is essential to our mission.
04:07So, I think with our partnership with NG, I think it helped to reduce our energy consumption and carbon footprint.
04:15And by doing this, it not only contributes to a healthier planet, but also achieve...
04:19I think the greatest thing is to achieve greater operational efficiency.
04:24This will help benefit both our business and the community that we serve.
04:29I think at UAC here, I think we are committed to protecting the environment and the nature
04:33to ensure a better world for the next generation.
04:35I think the key to have a successful, I think, partnership in sustainability
04:42is to find the right partner.
04:44I think in our case, we managed to find, I think, NG.
04:47And NG has been there to help UAC to enhance our energy efficiency,
04:53reducing costs amid our environmental goal while maintaining our operational excellence.
04:59What cutting-edge technologies or perhaps innovative solutions need NG deploy for UAC's decarbonisation journey?
05:09And how do these solutions set the benchmark for other Malaysian manufacturers?
05:16We supported UAC's journey to decarbonise with our typical flagship,
05:22what we call utility-as-a-service model, where we modernise the compressed air systems
05:30and improve the efficiency by more than 15%.
05:34And at the same time, we also deployed a state-of-the-art technology for the steam boiler plant,
05:41right, by switching the fuel from middle fuel oil to natural gas.
05:47And we also rewet the infrastructure around it, including installation of new deaerator
05:53and systems that are around the deaerator.
05:57The transformation reduced carbon footprint of the steam plant efficiently, significantly.
06:03We also helped to adopt green energy by installing rooftop solutions on the roof,
06:09which is currently providing a capacity of more than 7 megawatts.
06:16And that is equivalent to reducing about 13,000 tonnes of CO2 emissions annually.
06:22So this kind of comprehensive strategy for UAC really sets the benchmark for industrial manufacturers in Malaysia.
06:29It's a way to demonstrate as well how an industrial leader can adopt sustainability goals
06:37and at the same time maintain the operational efficiency that all manufacturers are pursuing, right?
06:45Like you said, this sets a new benchmark and also a new milestone throughout these whole partnerships.
06:50But Mr. Loon, could you share on what motivated UAC Berhad to prioritise sustainability
06:56and also embark on this decarbonisation journey with NG?
07:02Okay.
07:02I think for UAC, I think the main reason why we embark on this sustainability journey with NG
07:11is because in UAC itself here,
07:13I think we strongly believe that sustainability is essential to our mission.
07:17Because we believe that I think as we go by,
07:21I think more and more of our customers are getting more eco-conscious
07:24as well as strengthening of government regulation,
07:28not just in Malaysia,
07:29but I think we can see in the governments, in other governments, in other countries as well.
07:34So that's the reason we have the belief that in UAC,
07:38we have the belief that we must move to sustainability.
07:40By moving to sustainability,
07:43we can reduce our energy consumption and carbon footprint.
07:47Not only it will help to contribute to a healthier planet,
07:51but also achieve greater operational efficiency,
07:54benefiting both our UAC operation as well as the community that we live in.
08:00Here in UAC itself,
08:01we are committed to protecting the environment and nature
08:04to ensure a better world for the next generations.
08:06So that's why I think choosing having the right partner
08:10in our sustainability journey is very important.
08:13I think with NG itself,
08:14I think they have proven that they have helped UAC
08:18in enhancing energy efficiency,
08:20reducing costs as well as meeting our environmental goal
08:23while maintaining our operational excellence.
08:26For Mr Wong, before we go for a short break,
08:29for NG in European,
08:30how is this partnership with UAC
08:32part of a broader strategy
08:34to help Malay's industries adopt low carbon solutions
08:37and actually achieve the net zero goals by 2050?
08:43Yes, as Mr Loon rightly pointed out just now,
08:45the regulatory environment is getting more and more complex
08:49and including even the energy sector
08:52is getting more and more complex.
08:53With the recent, for example,
08:54you can see that there's a recent change
08:56in the TNP terrier structure as well.
08:58So at NG, our role really is to help the industries in Malaysia
09:02to make all this easier, right?
09:05To make the implementation of greener solutions much easier
09:09by taking away the complexity
09:11of having to worry about compliance
09:14to regulatory environment, for example.
09:16So we understand that industries
09:18are facing a series of challenges
09:20in lowering carbon footprint
09:23and meeting sustainability goals,
09:26which is why our proposition really
09:27is to help to make decisions easier
09:31for industrial leaders and players
09:33and at the same time
09:34to accelerate energy transition
09:36towards a lower carbon economy.
09:39We are very committed to work closely
09:41and hand-in-hand with local authorities
09:43and industrial players
09:45to decarbonize the entire industrial sector.
09:49The two key goals
09:51that we are trying to achieve
09:52for our industrial partners and clients,
09:55what first is to really help them
09:56reduce energy consumption and energy costs,
09:59and secondly,
10:00to really transition to a much cleaner
10:02energy supply systems where,
10:04for example,
10:05through the deployment of rooftop solar solutions.
10:09And last one,
10:10before we go for a short break,
10:11for Mr. Loon,
10:12from your perspective,
10:13from UAC's perspective,
10:15how did transitioning to more sustainable practices
10:18impact operational efficiency
10:19when it comes to cost savings as well
10:21and long-term competitiveness?
10:25I think from UAC's perspective,
10:27I think by adopting sustainable practices,
10:30it has transformed our operational efficiency,
10:33cutting costs,
10:34as well as enhancing our competitiveness.
10:37I think when we do the revaluing
10:38of our wireless system
10:40and also our compressed air system,
10:41it actually helps to modernize
10:43our entire operational manufacturing system
10:46and capacity.
10:48By using less energy,
10:50we have minimized waste
10:52and reducing downtime.
10:54And with that,
10:55it results in a smoother operation
10:57as well as increased productivity.
10:59I think all this improvement
11:00is very important.
11:02This has resulted in significant cost saving
11:04to UAC itself.
11:05Not only that,
11:06it also reduces lower energy expenses
11:09and at the same time maintaining productivity.
11:13By adoption of this green technology,
11:16it also strengthens our market position
11:18and aligns us with our customer expectation
11:21and ensuring UAC long-term growth.
11:25That's the reason why I think collaboration with NG,
11:28I think we deem it as a quite successful partnership.
11:34This has helped us to focus on a primary objective
11:36to drive better and sustainable manufacturing process
11:41for both our own operation
11:43as well as our environment.
11:46So for now,
11:47we've discussed all the motivations
11:48and how the partnerships started
11:50and how it is going to prioritize sustainability
11:53and also embark on this decarbonization journey
11:56throughout the industrial industry.
11:59But we have to go for a short break.
13:36Welcome back to Nia Gawane.
13:43And we're still in the discussion
13:44on Malaysia's bold leap towards net zero.
13:47And joining me still is the NG's Managing Director,
13:51Services Malaysia, Wong Yin Ki,
13:53and also Lun Pengwai, the CEO of UAC Berhad.
13:56And the next question where we want to talk about
13:58the METIS, recent Secular Economy Policy Framework,
14:01which emphasizes integrating sustainable practices
14:04across the manufacturing value chain.
14:06So how does this partnership exemplify or align with that policy?
14:10Perhaps you could start with Mr. Wong first.
14:12Yeah, I mean, in recent years, I have to say that we have seen many very positive efforts
14:19from the government of Malaysia, as well as METI and other authorities
14:23that are encouraging the deployment of embracing of green technologies
14:29and adoption of sustainability practices,
14:30which is very good for the sustainable future.
14:34A key focus has been to reduce greenhouse gas emissions,
14:38which align perfectly with the country's objective in a climate-friendly future.
14:44I think the transformation of UAC is a strong example
14:50of how a strong partnership between industrial players and NG can really drive real
14:56and lasting changes in the utility systems.
15:01I mean, I have to say that UAC started embarking on this sustainability journey
15:05way, way before the introduction of all the new frameworks and policies,
15:09right, which is about 10 years ago.
15:10And the commitment to green practices and the drive to pursue energy efficiency
15:17is evident in their step-by-step approach,
15:20which really began when we first started the partnership about 2018,
15:27when we first engaged in modernizing the compressed airpline.
15:31And through this collaboration, we can help UAC reduce the footprint
15:35and at the same time pursue energy efficiency,
15:41which these two are the critical elements in MITI's circular economy policy framework.
15:47So ultimately, it really sets the benchmark for energy transition
15:52in the industrial sector.
15:54And hopefully that will also help to achieve the nation's ambitious goal
15:58of achieving net zero carbon by as early as 2050.
16:02Maybe something from UAC's point of view,
16:05how does this partnership exemplify or align with that policy?
16:08Mr. Lung?
16:10Sure.
16:12I think from UAC's perspective,
16:14we are very happy that the PT has launched
16:18the recent circular economy policy framework.
16:21It shows that because I think like what Yinkit has mentioned,
16:26for UAC itself, our sustainability drive started back in two years, 2018,
16:32which is way before I think the framework has been launched.
16:37So with this recent launch of this circular economy policy framework,
16:41it's proven that UAC has what's correct in our earlier year strategy
16:45to move into sustainability.
16:47I think what we have done is that when we modernize our compressed air system
16:54as well as our boiler system, it helps to reduce carbon footprint
16:58while promoting energy efficiency.
17:00These two key are the two critical elements of Miti's circular economy policy framework.
17:07This partnership directly supported Miti goal of elevating sustainability in Malaysia,
17:13especially the manufacturing sector by reducing emission
17:17and accelerating the adoption of green technologies.
17:20Ultimately, I think UAC's goal is to achieve net zero emission by year 2050,
17:28which is in line with Malaysia coal as well.
17:31So this, I think, our effort is in line with, I think,
17:37this circular economic policy framework.
17:38Mr. Wang, with a plan of 14.2% increase in electricity tariffs,
17:44which is set to take effect in July this year,
17:47numerous stakeholders and also industries have raised significant concerns.
17:51So in your opinion, how can this affect throughout the whole ecosystems?
17:59The recently announced increase in the tariff has especially raised concern,
18:05especially to those vulnerable groups and energy-intensive industries such as UAC.
18:10However, I also believe that it designed an opportunity for the industry itself
18:15to pursue a more sustainable and energy-efficient future.
18:19I think with these government policies and targeted subsidies
18:23and incentives for renewable energy adoption,
18:27we can help to reduce, I think, the impact.
18:30I think for UAC's case, I think, for example,
18:32with the adoption of solar power,
18:34which we have recently started with energy back in 2024,
18:38it helped us to reduce usage of electricity grid by 27%.
18:45That represents a more sustainable approach in using less energy.
18:52So we believe that cooperation among government,
18:56businesses and society is to ensure a just and equitable energy transition.
19:00So I believe with this recently announced tariff,
19:04it gives an opportunity for entire Malaysia to pursue a more sustainable
19:09and energy-efficient future in the long run.
19:12I mean, it's a positive impact, you might see,
19:14but what advice could you give to other manufacturers
19:17as they're hesitant to invest in green initiatives,
19:20given that the initial cost and also operational adjustments that is involved?
19:25Mr. Loon.
19:25My advice is that I think for all the leaders,
19:31I think business leaders,
19:32I think we must come to a conclusion now
19:35that investing in green initiatives
19:37goes beyond just simple environmental commitment.
19:41It's a powerful business strategy
19:43that drives long-term operational efficiency
19:46as well as generate significant cost savings
19:49and it will boost our competitiveness
19:52in an increasingly eco-conscious market.
19:57Even though the initial investment may seem high,
20:02but we must prioritize sustainability
20:04and view it as a strategic opportunity
20:07rather than a burden.
20:08To help minimize, I think, the initial investment cost,
20:12again, it would be critical for the user
20:15or the industry stakeholders to look for a strategic partner.
20:18I think in this case for UAC,
20:20we have chosen ENG as a strategic partner
20:23to help us to embark on this sustainability drive.
20:28The next question goes to Mr. Wong.
20:29Perhaps we can share on how can actually businesses
20:32like UAC and also the partnership with ENG as well
20:35balance sustainability goals with profitability,
20:38especially in this era where ESG compliance
20:41is becoming a market differentiator right now.
20:44Right now.
20:48Perhaps Mr. Lu can take this question first.
20:57Mr. Lu or myself?
21:00Mr. Wong, please.
21:01Mr. Wong, please.
21:03As for me, yes, definitely.
21:06I think to balance sustainability goals
21:08with profitability is never an easy solution.
21:14But I think one of the ways is to really push
21:18for the implementation of sustainable solutions
21:21and at the same time find a model that allows
21:24cost savings is eventually on a net basis, right?
21:29So I think what our value proposition allows
21:32is exactly that, right, is to achieve a balance
21:34between reducing carbon footprint
21:37and improving profitability.
21:38Because our solution in all the projects
21:41that we implement, it always allow a net cost savings
21:44to the customers and the partners.
21:47So you improve your profitability
21:49by implementing ESG or green technologies.
21:53So that is exactly the zero capex model
21:56that we are deploying that we allow to achieve.
22:00So to encourage more sustainable practices,
22:04what kinds of incentives or frameworks perhaps,
22:07whether from the government or private sectors,
22:09do you think are necessary
22:10for accelerating green industrial transformation
22:12in Malaysia, Mr. Wong?
22:17I think a combination of incentives by the government
22:21and also for business is essential.
22:25For example, the current green technology financing scheme
22:29alongside with incentives such as JETA or JETA,
22:32the Green Investment Tax Allowance
22:34and Green Investment Tax Exemption
22:35has proven to be very useful.
22:38And I think if we can improve even further
22:41the efficiency of processing this kind of applications
22:44and granting approvals in a much shorter timeframe
22:47that will allow us to accelerate even further
22:50the investment decisions by stakeholders
22:53from the entire ecosystem.
22:56The recent Energy Efficiency Conservation Act
22:58has been extremely helpful as well.
23:01It starts to take effect in January 2025 this year.
23:05It emphasizes further the importance of energy efficiency.
23:11And the government now mandates the measurement
23:14of baselines and reporting of baselines,
23:16which eventually will translate into commitments
23:19to improve energy efficiency,
23:21especially for the energy intensive industries.
23:24It sends a very strong signal that the government
23:28is very serious about energy conservation
23:30and carbon reduction.
23:33At the same time, I think private sectors
23:35are also stepping up.
23:36If you look at Malaysian banks,
23:38they are very, very enthusiastic
23:40in offering financing support
23:42for decarbonization projects
23:45that we are deploying, for example.
23:48I think so, with collective efforts
23:51from all different stakeholders
23:52in Malaysia and in the sector,
23:55I'm quite confident that the momentum
23:57will continue to pick up
23:59when it comes to accelerating the energy transition.
24:03So from deploying cutting-edge solar
24:05and also energy efficiency solutions
24:07to this is all to align
24:08with the national sustainability goals.
24:10So with Malaysia's goals
24:11of achieving carbon neutrality by 2050,
24:14how do you see the planet shapes like this
24:16driving the industrial sector towards that vision?
24:19And for Mr. Loon,
24:20what's next on your decarbonization agenda?
24:24I think for UAC itself,
24:26we are on track to achieve our internal target
24:29of 27% reduction carbon emission by 2025.
24:35That I think we are on track.
24:37But our long-term goal is to have net zero emission
24:41by year 2050.
24:42So from now until 2050,
24:46from UAC perspective,
24:47we have already identified our long-term plan,
24:50both short-term and long-term framework
24:52on what are the things that we need to achieve
24:56to ensure we are zero percent carbon emissions,
25:00net zero carbon emission by year 2050.
25:03So what we have done internally for UAC itself,
25:06we are looking at our internal process,
25:08entire internal process from cradle to grave,
25:11looking at the way how we can further reduce carbon emissions,
25:16reducing energy consumptions.
25:19So this is an ongoing effort from UAC itself.
25:21I think this is something where I think we are looking at more.
25:25Together, we are in partnership with ENGY
25:28to look at what are the new technology that will come in
25:31from now until year 2050,
25:32what are the new technologies that we can further implement
25:36to our processes
25:37to bring down our net zero carbon emissions.
25:42So that is our long-term framework and goal for UAC.
25:47For Mr. Wong,
25:48before we end this discussion,
25:50what are the next big innovation
25:51in sustainable energy solutions for industries
25:53that you have under ENGY?
25:55Yeah, I think the pathway to carbon neutrality by 2050
26:01is definitely not easy.
26:03It requires a very, very proactive commitment
26:06and efforts and partnerships
26:07from all stakeholders in the ecosystem.
26:10So it's really my hope to see all stakeholders
26:13working together
26:14and pursue the aligned goal
26:20of achieving sustainability in the future.
26:22For us,
26:23we will continue to push
26:25for energy efficiency solution to be deployed.
26:29At ENGY,
26:30as a global player in low carbon energy and services,
26:33we are very committed to accelerating this transition.
26:37We wanted to work hand-in-hand with industrial players
26:39to achieve sustainability goals.
26:41We will continue to offer our expertise
26:44and our solutions,
26:45including our zero capex financing model
26:48to make the journey easier
26:50and more straightforward for industrial leaders.
26:53We see this as a long-term partnership.
26:56It's not a one-off retrofit exercise
26:58by a contractor, for example.
26:59We see this as a long-term decarbonization journey
27:03together with our industrial partners.
27:05And usually we will tailor
27:07and we will design our energy solutions
27:09around the changing needs
27:12of our industrial clients
27:14when it comes to their energy consumption patterns
27:18or their production growth patterns,
27:20for example.
27:21So the goal really is to ensure
27:24that industries can play an active role
27:26in contributing to Malaysia's carbon neutrality target.
27:30And at the same time,
27:31of course,
27:31to help our industrial players
27:33improve their profitability
27:34and efficiency as well.
27:37One factor or topic
27:40that I wanted to emphasize
27:41is also the fact that
27:43ENGIE will continue to promote
27:44the deployment of district cooling systems
27:48for large-scale developments
27:50or city-scale developments,
27:51for example.
27:52That is something that is at the core of our heart.
27:55We believe strongly in sustainable cooling.
27:57And we also believe in the deployment
28:01of large-scale renewable energy projects
28:03such as solar farms,
28:05solar rooftops in parallel.
28:07So throughout this whole 30-minute conversation,
28:10we have deep-dived into technologies,
28:12motivations,
28:13and also policy frameworks
28:14driving Malaysia's green industrial revolution.
28:17So I'd like to say thank you
28:18and also congratulations and all the best
28:20to both Wong Yin-Ki,
28:21the Managing Director,
28:22Energy Services Malaysia,
28:23and also Lun Peng Wai,
28:25the Chief Executive Officer,
28:26for your time and insights.
28:28And I wish you all the best again.
28:29And you can find this whole discussion
28:30on all of our social media platforms
28:32and that includes
28:33FestroAwani.com.
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