KUALA LUMPUR, Oct. 4 (Xinhua) -- BMI, a Fitch Solutions research unit, has seen Malaysia Energy Transitions Initiatives slow refined fuel demand growth.
BMI said in a note on Wednesday that it projected Malaysia's fuel consumption to grow at a much slower pace than anticipated.
"Malaysia's consumption of refined fuels is forecast to see slow and steady expansion over the next 10 years, averaging at around 1.5 percent through 2023 to 2032," the research house said.
It said that though an improving economy together with ongoing fuel subsidies are contributing to a recovery in fuel consumption, fuel demand faces downside pressures from high global oil prices and energy transition initiatives.
It also said the near-term outlook for fuel consumption points to upside, but the pace of demand growth could slow down in the long term as the government plans to implement policies aiming to cut fuel subsidies and accelerate energy transition initiatives.
As part of the country's objective to achieve net-zero emissions by 2050, the Malaysian government adopted the National Energy Transition Roadmap.
The roadmap aims to steer Malaysia's transition from traditional fossil fuels-based economy to a green economy. ■
