Maybank steps up to power Sabah's renewable energy transition
Ranita Abdullah
KOTA KINABALU (May 14): As Sabah accelerates its shift toward renewable energy, Maybank is stepping up as a strategic financial partner, offering full-spectrum support from project advisory to green capital mobilisation.
In an exclusive interview with The Borneo Post, Ranita Abdullah, Head of ESG Strategy & Solutions at Maybank's Group Global Banking, said the bank is committed to helping Sabah unlock its green potential.
'We aim to be our clients' transition partner of choice. Whether it's decarbonising existing operations or developing new renewable infrastructure, we're there from start to finish,' said Ranita.
Maybank's expertise spans the full project lifecycle — from advisory and structuring to arranging green capital. The bank has led numerous renewable energy financings, particularly in Peninsular Malaysia under the Large Scale Solar (LSS) programme.
However, Sabah has its own pioneering green finance track record.
'Sabah issued the world's first green SRI Sukuk in 2017 for Tadau Energy, followed by Telekosang in 2019. Green finance is not new to the state,' she noted.
Maybank often begins its involvement at the advisory stage, helping clients structure projects to be bankable.
'For example, we supported Malakoff in developing its sustainable finance framework — giving investors confidence that the projects meet ESG standards,' said Ranita.
Once viable, projects can proceed to green Sukuk issuance, a Shariah-compliant investment tool increasingly favored by ESG investors. 'These instruments attract capital from funds specifically mandated to invest in sustainable assets, often at better borrowing costs,' she explained.
Sabah's Energy Roadmap and Master Plan 2040, which targets 50% renewable energy capacity by 2035 and 80% by 2050 (up from the current 9%), is a strong draw for investors. 'Ambitious goals show serious commitment — now it's about execution,' she said.
Among Sabah's biggest hurdles is its limited grid infrastructure. The state's reliance on a single East-West 275kV transmission line poses a major bottleneck.
'Without a southern link and expanded grid connectivity, many renewable projects — especially in Sandakan and Tawau — will remain stranded,' Ranita cautioned.
She welcomed transitional solutions like the 400MWh Battery Energy Storage System (BESS) in Lahad Datu, expected mid-2025, but stressed the need for long-term grid investments.
Regulatory clarity is another key concern.
'Standardised approvals, streamlined licensing, and predictable policies are vital. The one-stop centre under ECOS is a great start,' she added.
Aligning with the National Energy Transition Roadmap (NETR) is also critical for investor confidence.
'Sabah is not just part of the national target — it's essential to achieving it,' said Ranita.
Beyond hydropower, Sabah holds strong promise in solar and biomass. Maybank plans to catalyse private interest with innovative financial solutions.
'Many LSS Sabah winners secured capacities as low as 5MW. We can bundle these under an SPV to issue a collective green Sukuk — that's the kind of innovation we bring,' she explained.
Maybank also aims to connect Islamic investors with viable Sabah projects, leveraging its network and on-the-ground expertise.
'We're bullish on Sabah's future. With the right infrastructure, policy clarity, and partnerships, Sabah can become a regional leader in sustainable energy,' Ranita concluded.
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