Costs and pushbacks are hindering progress.
The idea of a low-carbon city (LCC) was developed to address environmental degradation brought on by rapid urbanisation in an effort to fight climate change. An LCC comprises communities that, instead of relying on traditional methods to mitigate the effects of climate change, adopt sustainable green technologies and environmentally friendly practices and produce relatively low greenhouse gas emissions. Thus, the main goal of an LCC is to employ green initiatives within construction to create a competitive, sustainable and livable city.
Approximately 1.4 billion more people are anticipated to reside in Asian cities by 2050 than now. Cities currently account for 67% to 76% of energy use and 71% to 76% of energy-related greenhouse gas emissions worldwide, which is concerning given the challenges posed by climate change and the need to reduce carbon emissions.
Previously, the International Energy Agency (IEA) calculated that cities' energy-related emissions in 2006 amounted to 19.8 gigatonnes of CO2e (GtCO2e) or 71% of all global emissions of greenhouse gases related to energy. It is anticipated that by 2030, this amount will rise to 30.8 GtCO2e or 76% of all energy-related emissions worldwide.
Comparing Malaysia to its fellow Southeast Asian nations, the country's average per capita carbon footprint is approximately twice that of Thailand, four times higher than that of Indonesia or Vietnam, eight times higher than that of the Philippines and 24 times higher than that of Cambodia. The only country that emits twice as much carbon as Malaysia is Singapore.
Green initiatives utilise measurements
The 3M (measurement, management, and mitigation) approach is used to lessen environmental impacts through the National Low Carbon Cities Masterplan (NLCCM), a low-carbon initiative in Malaysian cities under the Green Technology Application for the Development of Low Carbon Cities (GTALCC).
The Green Building Index (GBI) has emerged as a crucial benchmark for sustainable development in Malaysia. Established in 2009 by the Malaysian Institute of Architects and the Association of Consulting Engineers Malaysia, the GBI is an industry-recognised green rating tool to promote sustainability and provide developers and building owners the opportunity to design and construct green, sustainable buildings.
According to GBI’s official page, these green constructions can provide energy savings, water savings, a healthier indoor environment, better connectivity to public transport and the adoption of recycling and greenery for their projects to reduce carbon footprints and impacts on the environment.
Opinions of industry leaders
For the Budget 2025 Roundtable by StarProperty, the chief executive officer (CEO) of Matrix Concepts Holdings Bhd Chai Keng Wai shared his thoughts on the promotion of ESG and the Construction 4.0 plan post-event.
“Government incentives such as tax breaks for GBI-certified buildings and import duty exemptions for green technology have spurred developers to incorporate ESG principles into their projects. Meanwhile, the Construction Industry Transformation Programme (CITP) has promoted the adoption of Industrialised Building Systems (IBS) and Building Information Modeling (BIM). The BIM eSubmission system introduced by the Ministry of Housing and Local Government is a significant step towards mandating BIM in large-scale projects, streamlining construction processes and reducing waste,” said Chai.
“As global ESG standards tighten, the Malaysian government's support for ESG-compliant projects through initiatives like the SRI Sukuk Framework encourages developers to align with international best practices. To further advance ESG and Construction 4.0, we advocate championing green building projects by setting ambitious targets for GBI certification and carbon footprint reduction. The company should also lead the industry in adopting IBS and BIM across all projects, demonstrating the efficiency and sustainability benefits of these technologies. Additionally, establishing an internal ESG advisory group can ensure adherence to high environmental and social governance standards and explore new sustainable practices,” continued Chai.
SP Setia Bhd’s CEO Datuk Zaini Yusoff urge the industry to elevate standards by adopting Industrialised Building Systems (IBS) and Building Information Modeling (BIM).
SP Setia Bhd’s chief executive officer (CEO) Datuk Zaini Yusoff also provided insights from their end post-event. “Last month, GreenRE introduced new certification criteria for existing non-residential buildings. These criteria, designed for buildings like hotels, offices, malls, schools, and healthcare facilities, evaluate factors such as thermal performance, ventilation, renewable energy use and energy efficiency. The certification tiers range from silver to super low energy, providing a framework for enhancing building sustainability,” said Zaini.
“We urge the industry to elevate standards by adopting Industrialised Building Systems (IBS) and Building Information Modeling (BIM). By pushing boundaries, we can foster the development of more sustainable projects in Malaysia. The Construction 4.0 Strategic Plan is a five-year initiative aimed at boosting the construction industry's capabilities in the 4.0 era. Aligned with the Shared Prosperity Vision 2030 and the National 4.0 Industry Policy, this plan supports broader national development goals,” recommended Zaini.
SP Setia pushes for a review of the strategic plan to ensure its alignment with these policies. By doing so, industry players can strengthen the construction industry's contribution to Malaysia's sustainable growth and development.
Should homebuyers bear the cost?
From the homebuyer’s perspective, green construction costs will be passed along. For older developments, becoming green requires the installation of green components. UEM Sunrise Bhd’s CEO Sufian Abdullah expressed that homebuyers were always concerned about costs. “At the end of the day, it is down to the customers what they want. For us to pre-equip (customers) with something, sometimes they would say, I don’t need this, why should I pay you a premium for it? Solutions like PV cells and converters would change the fire insurance rate. Who is going to underwrite those? Customers might say, you put PV cells on the rooftop, the insurance is going to be costlier. So I would suggest tackling green issues from the grassroots,” said Sufian.
UEM Sunrise Bhd’s CEO Sufian Abdullah shared that costs of green initiative installation is always the biggest concern.
“Let’s approach the city councils and UBBL to go for passive solutions. Natural lighting and good ventilation as part of the by-laws. That way we can get the councils to rate the buildings based on that, and on top of that the buildings can go for GreenRE. (This way) would determine the kind of incentives that we get. For UEM Sunrise, we incorporate as many passive designs as possible. We have an app where buyers can approach us to install PV cells and our service providers will come to install it for them. They would also take up fire insurance. The insistence that all the green solutions should come upfront, I think it is us missing the fact that buyers have a choice,” he continued.
Land and General Bhd managing director Low Gay Teck echoed Sufian’s sentiment. “Councils should start with a set of checklists to see how practical are the buildings being designed, to cater for the green criteria of airflow, light and ventilation. In fact, for a few of my projects, I have spent so much time designing the water curtain and beautiful entrances, but upon handing it over the joint management body (JMB) didn’t turn it on even once a year to save electricity. They only turned on the roof lighting once or twice too. So, the building management also plays a role but they always say there is a cost issue. Now when we design components that would be handed over, we look at the long term whether the users will use the facilities, whether they will switch them on,” said Low.
Nationwide shifts
As such, the Twelfth Malaysia Plan (12MP) will continue to be on the key themes of resetting the economy for affordability, well-being and inclusivity as well as advancing sustainability. There have been nationwide shifts to more sustainable economic practices and lifestyles that value natural endowments and environmental health.
The transition to low-carbon cities is crucial for addressing climate change and building sustainable communities. Malaysia has made significant strides in this direction through initiatives like the NLCCM and the promotion of green building practices. While challenges such as cost and adoption remain, the positive impact of low-carbon cities on the environment, economy, and quality of life is undeniable. By continuing to invest in research, development, and policy support, Malaysia can position itself as a leader in sustainable urban development and contribute to a more resilient and prosperous future.
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