theSun Property November 2017

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HAVING examined the
sustainable industrialised
building systemand green
integrated building
solutions last week, todaywe
feature GreenTechMalaysia
(GreenTech) CEODrMohdAzman
Zainul Abidin’s replies to queries on
the GreenTechnologyMaster Plan
(GTMP), the LowCarbonCities
Framework (LCCF) and the role and
responsibility of GreenTechwhere
these are concerned.
Q: What is GreenTech’s role in
the establishment of the GTMP;
who initiated it; whenwas it first
broached; andwhywas it
introducedwhenMalaysia
already had “green” goalswhich
have yet to be achieved?
A: GreenTechMalaysia was
appointed by the Energy, Green
Technology andWaterMinistry
(KeTTHA) to develop the Green
TechnologyMaster Plan (GTMP)
which definesMalaysia’s strategic
plans to develop green technology
and create a low-carbon, resource-
efficient and sustainable economy.
Malaysia recognised the
significance and importance of
striving for low-carbon economy,
which can enhance its global
competitiveness, at the same time,
attain environmentally sustainable
socio-economic growth. The GTMP
is an evolving, long-termaction plan
to actualise the vision, objectives,
goals and strategic thrusts of the
National GreenTechnology Policy.
It provides the framework and key
elements for implementation by
defining a realistic action plan from
2017 to 2030 in propelling green
technology as a driver to accelerate
the national economy and promote
sustainable development.
We believe the formulation of
the GTMP can support and
strengthenMalaysia’s efforts in
becoming a high-income and
developed nation by 2020.
Q: Howdoes the LCCF fit into the
master plan andwhat is
GreenTech’s responsibility in
succeeding the goals under the
LCCF vision?
A: The LCCFwas established to
promote sustainable developments
that will subsequently reduce
carbon emissions in linewith the
government’s commitment to
reduce its greenhouse gases
emissions per GDP per capita by
45%by the year 2030. The
commitment wasmade during the
21st Conference of Parties to the
UnitedNation’s Framework
Convention on Climate Change in
Paris called COP21. The LCCF is
part of theministry’s initiative
aimed to set inmotion further
initiatives and action plans at
various levels, towards overall
reduction across thewhole nine
yards of the carbon footprint
platform, nationwide. GreenTech
Malaysia was appointed by the
ministry as an “implementer
agency” to put into action, actualise
andmaterialise the LCCF.
LCCF helps stakeholders in cities
and townships to define their
priorities and develop further action
plans to reduce their carbon
emissions as it focuses specifically
on carbon reduction strategies and
measures. As an implementer
agency for LCCF, GreenTech
Malaysia is responsible in
conducting training and awareness
programmes for all the cities’
stakeholders, especially local
authorities and developers, provide
consultancy and one-on-one
coaching sessions in setting up the
baseline for respective cities; and
provide technical advisory for the
LCCF application and recognition.
Q: In the implementation of the
LCCF, there are 154
municipalities selected, what
was the criteria for the
selection?
A: There are 154municipalities in
Malaysia. Due to limited resources,
52 local authorities with City and
Municipal Council (Bandaraya and
Perbandaran) status were identified
for LCCF implementation. These
are the areas where there is a higher
concentration of population, where
sources of carbon emission and
pollution problems exist and
mitigation is needed, hence they
were ‘selected’. Other factors
include themunicipality’s readiness
and commitment tomove towards
low-carbon development. However,
general awareness and training is
given to all local authorities in the
country.
Q: Can you elaborate a littlemore
on GreenTech’s role as an
“implementer agency” in
regards to the LCCF?
A: Our LCCFwork concernsmore
with the local authorities. However,
upon request we extend our
consulting and advisory services to
private developers to assist them in
implementing the green agenda
through green technology and
low-carbon solutions in their
development projects according
to the LCCF, besides conducting
performance-based assessment on
carbon reduction blueprint at the
end of the assessment period
(minimumassessment period is
two years).
Q: Are there any incentives to
encourage business and industry
owners, including those in the
building and property develop-
ment industry to go green?
A: There are a few incentives for the
development of GTprojects,
services and purchase of assets such
as:
1. Tax Incentive for Green
Technology Project
Investment Tax Allowance
(ITA) of 100%of qualifying capital
expenditure incurred on a green
technology project from the year of
assessment 2013 (date onwhich the
first qualifying capital expenditure
incurred is not earlier thanOct 25,
2013) until the year of assessment
2020. The allowance can be offset
against 70%of statutory income in
the year of assessment. Unutilised
allowances can be carried forward
until they are fully absorbed.
Green technology projects
related to renewable energy, energy
efficiency, green buildings, green
data centres andwastemanagement
schemes can qualify for this tax
incentive. Refer to the Guideline for
Application for Incentives and/or
Expatriate Posts for Green
Technology (GT) at
my for more details. Applications
received byMalaysian Investment
Development Authority (Mida) by
Dec 31, 2020 are eligible for this
incentive.
2. Tax Incentive for Green
Technology Services
Income tax exemption of 100%
of statutory income from the year
of assessment 2013 until the year
of assessment 2020.
Green technology services
related to renewable energy, energy
efficiency, electric vehicles (EV),
green buildings, green data centres,
green certification and verification,
and green townships can qualify for
this tax incentive.
Applications received byMida
byDec 31, 2020 are eligible for this
incentive.
3. Tax Incentive for Purchase of
GreenTechnologyAssets
Investment Tax Allowance
(ITA) of 100%of qualifying capital
expenditure incurred on green
technology assets from the year of
assessment 2013 (date onwhich the
first qualifying capital expenditure
incurred is not earlier thanOct 25,
2013) until the year of assessment
2020. The allowance can be offset
against 70%of statutory income in
the year of assessment. Unutilised
allowances can be carried forward
until they are fully absorbed.
The purchase of green
technology assets (as listed in
MyHijauDirectory) will be eligible
for this tax incentive. Refer towww.
for the list of
assets certified by theMalaysia
GreenTechnology Corporation
(MGTC) asMyHijau and approved
by the FinanceMinistry.
Applications received by
MGTC byDec 31, 2020 are eligible
for this incentive.
Q: There is common belief that
“buying green” (as in property)
costsmore that “buying regular”
– can you share your thoughts on
this ideology?
A: It is another irony of our modern
times that green is seen by some as a
luxury only thewealthy can afford.
Many, many years ago, green living
was a norm “enjoyed” by practically
everyone; except therewas no
“label” for such a lifestyle as that
was howpeoplewere naturally
brought up. These days, green is
seen as a luxury, due to the
additional cost charged to
customers for:
R&D activities for newor
innovation technology
Green certification including
testing facilities and audit
verification
Expertise in green technology
including training and skill
development
Intellectual property including
design and pattern development
Cost is not such a simple issue,
becausewe cannot compare itemA
and B next to each other. It wouldn’t
be an apple-to-apple comparison.
When you consider the
environmental costs of building or
operating a house, things become
complicated quickly. Beforewe can
argue intelligently about whether
the benefits of green products are a
fair exchange for the price, we have
to understand the true cost of it any
other way. When buying green, we
take into account that the product
X
X
X
X
will reduce the operational,
maintenance and disposal cost.
When people dismiss green
buildings as too expensive, they
usuallymean that adding green
features ie. renewable energy, extra
insulation, recycledmaterials to the
house theywere already planning to
build or remodel requires toomuch
money. But such an evaluation
hardlymeans that green buildings
are too expensive. It simplymeans
that some people value other things
more highly.
Q: At the recent IGEM2017, the
significance and importance of
“going green”was
communicated and reinforced;
where arewe in terms of being
“responsibly green” compared
to other countries?
A: We are still at the “promotion”
stagewhere the government, NGOs
and private sector need towork
hand in hand to encourage
sustainable lifestyles to all
Malaysians. We have not reached
the stagewhere sustainable lifestyle
is the “default” choice or “preferred”
choice. At this stage, we need
campaigns and roadshows, and
many, many efforts to promote
green, especially from the
grassroots level. We believe that
many people in this countrywant to
live sustainably but don’t
necessarily knowhow to do so.
Themain benefits of taking up a
green lifestyle can easily be seen
fromcost savings and health
benefits. It’s a lifestyle that one
chooses to embrace not only for
him/herself, but for the family, the
community and the planet. A
sustainable or green lifestyle is
about the environment, the
economy and the people. These
three are inseparable.
Q: If there is one thing you’d like
our readers to “take home” from
this Q&A, what would it be?
A: With all the hype on going green,
I would ask your readers to please
be very careful about
“greenwashing”. Green has become
a thing that many peoplemake
claims without knowingwhat it
reallymeans to be green. End users/
customersmust be one step ahead
to ensure the products they
purchase have the necessary and
proper certifications, with third
party verification, which is whywe
have theMyHIJAU label. Wewant
customers to demand for green like
how they demand for halal andwe
wish forMalaysians to reach that
level of awareness soon.
Followour column next week on
howyou can cut capital costs with
green developments.
Email your feedback and
queries to: propertyqs@
X
PHOTOS /ISKANDARMALAYSIA.COM.MY
GREENSERIES Taking ‘green’ by thehorns
>GreenTech’s role inpromoting sustainabledevelopments and succeeding thebiggreenplan
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theSun ON FRIDAY | NOVEMBER 17, 2017