Najib: Renewable energy companies should invest wisely

KUALA LUMPUR: Renewable energy companies should invest wisely in improving their production which will make them more appealing when oil prices rebound, said Prime Minister Datuk Seri Najib Razak.
He said recent events have shown that a dramatic fall in oil prices can be just as disruptive as a spectacular rise, citing the end of the oil crisis in 1974.
"The low price of oil can and should be a spur to innovation. This is a time when cost saving technologies will be greater in demand than ever," Najib said in his keynote address at the 18th Asia Oil and Gas conference here yesterday.
He said the onus was on renewable energy source companies to lead these innovations and make them more appealing to the public.
"They (renewable energy source companies) should be investing in improving their production methods, making them cheaper and more economically viable in the long run, ensuring that renewable energy will be even more appealing when oil prices rebound," he said.
Najib also said that the drop in price of crude oil has had implications for many governments around the world, but reforms which were enacted by the government has put Malaysia in good stead to weather external shocks.
"Although about one third of the country's revenue source has taken a hit, the low oil price environment also means that Malaysia's exports have become more competitive. It has also brought opportunities to make timely changes and set reforms in place," he said.
The reforms included the lifting of subsidies of petrol and diesel and the implementation of the Goods and Services Tax, which Najib said will strengthen the resilience of the nation's economy.
He also said that there has been far too much focus on the problems of surplus supply of oil and instead said that attention should be concentrated on stimulating economic growth which will in turn elevate demand.