As Sabah fast-tracks its renewable energy ambitions, Maybank is positioning itself as a pivotal partner in the state’s green transition — providing end-to-end financial and strategic support to turn vision into reality.
In an exclusive interview with The Borneo Post, Ranita Abdullah, Head of ESG Strategy & Solutions at Maybank Group Global Banking, underscored the bank’s commitment to helping Sabah unlock its sustainable energy potential.
“We aim to be our clients’ transition partner of choice,” Ranita said. “Whether it’s decarbonising legacy systems or financing new renewable infrastructure, Maybank is there every step of the way.”
From Blueprint to Bankability
Maybank’s role goes beyond funding. It provides comprehensive advisory across the project lifecycle — from structuring bankable frameworks to mobilising green capital. The bank has played a central role in numerous renewable energy financings across Malaysia, particularly under the Large Scale Solar (LSS) programme in Peninsular Malaysia.
Sabah, however, brings its own green credentials to the table.
“Sabah was ahead of the curve,” noted Ranita. “It issued the world’s first green SRI Sukuk in 2017 through Tadau Energy, and followed up with Telekosang in 2019. Green finance isn’t new here — it’s evolving.”
Maybank typically engages at the early stages, working with clients to structure projects that meet investor expectations and ESG criteria. One such example is Malakoff, which Maybank assisted in developing a sustainable finance framework to assure stakeholders of the project’s environmental integrity.
Once projects are investment-ready, Maybank facilitates green Sukuk issuance — a Shariah-compliant, ESG-aligned financing instrument that’s increasingly favored by sustainable funds.
“Green Sukuk tap into a deep pool of capital earmarked for sustainable investments,” said Ranita. “Often, they come with more favorable terms, making them attractive for both issuers and investors.”
Sabah’s Green Horizon
Sabah’s Energy Roadmap and Master Plan 2040 sets ambitious targets — 50% renewable energy capacity by 2035 and 80% by 2050, a dramatic leap from the current 9%. These bold objectives are energising investor interest, but success hinges on infrastructure and policy alignment.
A critical roadblock is Sabah’s limited grid network, particularly its dependence on a single East-West 275kV transmission line. This chokepoint restricts the viability of renewable projects in regions like Sandakan and Tawau.
“Grid capacity is the Achilles’ heel of Sabah’s energy transition,” Ranita warned. “Without a southern transmission link and broader connectivity, many promising projects will remain stranded.”
She acknowledged the upcoming 400MWh Battery Energy Storage System (BESS) in Lahad Datu — slated for mid-2025 — as a vital stopgap. However, she stressed that lasting progress will require more robust, long-term grid investments.
Policy and Innovation: The Keys to Scale
Clear, consistent regulations are another priority. Ranita welcomed the establishment of a one-stop centre under ECOS to streamline approvals and licensing, but noted that further regulatory standardisation is essential to build investor confidence.
Alignment with the National Energy Transition Roadmap (NETR) is equally crucial.
“Sabah isn’t just participating in the national energy agenda — it’s pivotal to achieving it,” she said.
With vast potential beyond hydropower — particularly in solar and biomass — Sabah is well-positioned to lead the next wave of sustainable energy projects. Maybank is exploring creative financial models to catalyse this momentum.
One such innovation: bundling small-capacity LSS projects (as low as 5MW) into a single special purpose vehicle (SPV) to issue a collective green Sukuk — expanding access to capital while streamlining investment.
“This is the kind of structuring creativity Maybank brings to the table,” Ranita said. “We bridge innovative projects with capital markets — especially Islamic investors seeking ESG-compliant opportunities.”
A Regional Beacon for Sustainability
Maybank’s confidence in Sabah is clear.
“We’re bullish on Sabah’s future,” Ranita concluded. “With the right infrastructure, clear policies, and strong partnerships, Sabah can become a regional champion in renewable energy.”