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Energy efficiency of buildings in Southeast Asia offers great opportunities for Danish companies  

06.07.2018  04:17

Growing environmental consciousness from local governments combined with untapped market potential in energy efficiency in buildings offer the perfect platform for a Strategic Business Alliance between Danish companies. By including the right mix of complementary Danish EE solutions, Danish companies have a much stronger value proposition to offer to local customers. Contact the Trade Council of Denmark in Southeast Asia, to hear more about market opportunities in Malaysia, Indonesia and Singapore and how to become part of the Strategic Business Alliance.  

A growing market potential

Investment opportunities in energy efficiency throughout Southeast Asia are estimated at USD 400 billion. Nearly 40% is earmarked the building sector where significant energy efficiency potential remains untapped. The potential is especially considerable for hospitals, hotels, shopping malls and commercial buildings, where energy is required constantly.

In Malaysia, medical tourism continues to grow as one of the key economic areas. Malaysia has more than 150 public hospitals and medical institutions besides 240 private hospitals with more than 54,000 beds. In 2016, Malaysia received more than 921,500 health travellers contributing to the growth of this sector.

Purpose-built office buildings are interesting because the 21,500,000 square meters they supply in Malaysia are divided across almost 2,500 properties - each of them offering a potential business case related to energy efficiency projects.

Indonesia, Malaysia and Singapore had almost 50 million tourists last year. Energy efficient hotels are a necessity especially because of the growing environmental consciousness of both tourists and the population.

In the region, shopping malls are the centre of everything. In Kuala Lumpur and Jakarta, more than 425 malls are requiring tremendous amounts of energy each day.

The Strategic Business Alliance – Why?

Danish Energy Efficiency Partners (DEEP) have already worked extensively with energy efficiency in Malaysia’s building sector and developed a good reputation with strong competitive advantages compared to other energy service companies. As Managing Director for DEEP, Morten Søndergaard acknowledge the market potential in the region and believes that bringing in more Danish companies through a Strategic Business Alliance would be a positive next step.

“Energy Efficiency retrofitting of existing buildings in Southeast Asia offers a great market potential. By having the right combination of complementary Danish solutions in a business alliance, we will be much more attractive seen from the local building owners’ perspective”.

Government support for energy efficiency projects

The Malaysian government has launched different initiatives to promote energy efficiency in buildings in both the public and private sector. Aside from tax incentives and tax allowances for investments in green technology and services, the government has also introduced the “Energy Audit Conditional Grant” scheme. Last year, the Malaysian government also launched a USD 50 million energy performance contracting (EPC) fund to encourage the growth of energy-efficient projects in the country.

Denmark well known for energy efficiency in Malaysia

Denmark has via its DANIDA development assistance to Malaysia from 1994-2010, been an important partner in promoting the energy efficiency agenda in Malaysia such as regulations, energy ratings and the promotion of some of the countries’ first energy efficient public buildings. The fact that Danish solutions are already renowned for high quality in Malaysia and rest of the region reinforces the business opportunities for Danish companies.

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