Sustainability race: How Malaysia and China innovate for a greener future

THE global push for sustainability has intensified, urging countries to balance economic growth with environmental responsibility. Within Asia, Malaysia and China have emerged as key players in green innovation, adopting distinct yet complementary strategies. While China capitalises on its industrial scale and technological prowess, Malaysia focuses on policy frameworks, public-private partnerships, and environmentally responsible practices. A comparative examination of their efforts sheds light on their achievements, challenges, and future opportunities in transitioning to a greener economy.

China's green innovation drive

China has positioned itself as a global leader in green innovation through massive investments in renewable energy, electric vehicles (EVs), and sustainable urban development. By 2024, it is constructing nearly double the wind and solar power capacity of the rest of the world combined, including 180 gigawatts (GW) of solar and 159 GW of wind energy. This momentum is supported by strong government policies aiming for 25% non-fossil fuel energy by 2030. In the EV sector, China produces nearly two-thirds of the world’s EVs and over 75% of EV batteries, thanks to supportive incentives, robust local manufacturing, and broad deployment. EV adoption is integral to China’s strategy for decarbonising transportation and achieving net-zero emissions. Internationally, the Green Belt and Road Initiative (BRI) reflects China’s commitment to embedding sustainability in its global infrastructure projects. Despite these advances, a major hurdle remains: continued reliance on coal for electricity generation, which threatens its long-term green goals.

Malaysia’s approach to green innovation

Malaysia’s green innovation strategy is policy-driven and sector-focused, targeting energy, industry, and transportation. A central pillar is the Net Energy Metering (NEM) programme, which replaced the earlier Feed-in Tariff scheme in 2017. Now in its third iteration and extended until mid-2025, NEM 3.0 supports the adoption of rooftop solar systems across residential, commercial, and industrial settings. Effective public communication plays a crucial role, as policy support is often tied to public awareness. In manufacturing, Malaysia promotes energy-efficient and low-carbon technologies, with the Malaysian Sustainable Palm Oil (MSPO) certification highlighting efforts to green one of its major exports.

In aviation, the country launched a Decarbonisation Plan in 2024, targeting net-zero emissions by 2050 through sustainable aviation fuels and carbon offset strategies. By 2027, Malaysia plans to begin producing sustainable jet fuel at a capacity of one million metric tons annually.

Still, challenges persist, notably limited funding for green startups and dependence on fossil fuels. To mitigate financial constraints, the Green Technology Financing Scheme (GTFS) was extended through 2026, with RM1bil allocated for green investments. Additionally, carbon taxes are set to be introduced in 2026 for the iron, steel, and energy sectors, with proceeds reinvested into green technologies.

Emerging trends in green innovation

Both nations are embracing technological advances that intersect with sustainability. China is deploying AI, blockchain, and big data to enhance energy efficiency and emissions monitoring. Malaysia, meanwhile, is fostering a new wave of eco-startups and digital platforms focusing on sustainable agriculture, waste management, and clean mobility. These shifts indicate a broader transformation from traditional policy frameworks to agile, tech-enabled ecosystems involving both the public and private sectors.

Education and Research Institutions

Academic and research institutions play a pivotal role in driving green innovation. In China, universities such as Tsinghua and Zhejiang lead in renewable energy, low-carbon construction, and environmental engineering. In Malaysia, Universiti Teknologi Malaysia and Universiti Kebangsaan Malaysia spearhead sustainability research in green infrastructure, biodiversity, and climate-resilient agriculture. These institutions not only contribute scientific expertise but also help prepare future sustainability leaders through interdisciplinary education and global collaborations.

Grassroots and Community-Led Innovations

Community engagement is a critical yet often under appreciated driver of green innovation. In Malaysia, urban farming groups, zero-waste initiatives, and river-cleaning campaigns reflect how citizen efforts align with national sustainability goals. In China, eco-villages and low-carbon agricultural practices are being adopted in rural areas, often through community-based renewable energy projects. These initiatives show that innovation can be inclusive, culturally grounded, and people-led, complementing top-down policy efforts.

Bilateral Collaboration Opportunities

China and Malaysia are both working toward greener futures, but they are doing it in different ways. China is known for spending big on new green technologies, while Malaysia focuses more on targeted policies and helping specific industries become more sustainable. Despite these differences, there are good chances for the two countries to work together. For example, Malaysia could make use of China’s experience and technology in clean energy and electric vehicles. There are also opportunities to work on funding green projects together, especially through China’s Belt and Road Initiative, which supports infrastructure development. On a bigger scale, if countries in Asia, including China and those in Asean, join forces on green efforts, it could lead to faster and more effective progress. In the end, how well these countries balance working together and competing may shape how quickly the region becomes more sustainable.

Conclusion

Both China and Malaysia are making impressive strides in green innovation, albeit through different routes. China leads in large-scale technology deployment and industrial transformation, while Malaysia excels in targeted policies, public engagement, and sector-specific strategies. As both countries navigate their sustainability journeys, their success in balancing economic growth with environmental protection could serve as a model for other developing economies. Ultimately, whether through mega-scale renewable energy projects or grassroots environmental movements, the shared commitment to a greener future underscore the importance of multi-level, multi-actor collaboration in shaping a sustainable Asia.

> The views expressed here are entirely the writer’s own.

Professor Dr Amy Yeo Chu May is a Professor at Tunku Abdul Rahman University of Management and Technology.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the Southeast Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT).