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Malaysia to build first sustainable aviation fuel plant by 2027, says deputy PM

Melaka: Malaysia is stepping up investment in sustainable aviation as part of efforts to cut carbon emissions from tourism while creating new industries and jobs, Deputy Prime Minister Datuk Seri Fadillah Yusof said on Saturday (Sept 27), reports The Star.

Speaking at the opening of World Tourism Day (WTD) 2025 and the seventh World Tourism Conference (WTC) 2025, Fadillah, who represented Prime Minister Datuk Seri Anwar Ibrahim, announced that the country’s first biomass-based Sustainable Aviation Fuel (SAF) facility is scheduled to begin operations in 2027.

“The elephant in the room is tourism emissions, especially from aviation, which accounts for half of the sector’s direct emissions. No country can shift an industry of this scale alone, so multilateral cooperation is crucial for a sustainable future,” he said in his keynote address at a hotel in Taman Melaka Raya.

Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing and Melaka Chief Minister Datuk Seri Ab Rauf Yusoh were also present.

SAF, produced from waste oils and agricultural residues, is seen as a key tool in cutting aviation emissions. The International Air Transport Association (IATA) estimates global production will double to two million tonnes this year, but that still makes up less than 1% of total airline fuel use.

Fadillah said Malaysia’s tourism strategy places environmental protection at its core. As one of the world’s 12 megadiverse nations, Malaysia is home to more than 15,000 plant species and 175,000 fauna species. “We must protect rainforests, mangroves and coral reefs not only as a national duty but a global responsibility,” he said, adding that healthy ecosystems also attract visitors and support local livelihoods.

Highlighting Johor’s Mersing as a success story, he said the former fishing village is now a pioneer of sustainable coastal tourism and will soon host Malaysia’s first UN Tourism-recognised observatory under the International Network of Sustainable Tourism Observatories (INSTO).

He said the country is prioritising high-value tourism segments such as nature-based travel, adventure tourism, Muslim-friendly services, medical and wellness tourism, educational journeys, business events and digital nomad hubs. “The backbone of our plan is to grow meaningfully, sustainably and with resilience,” he added.

Meanwhile, Tiong urged the industry to move beyond rhetoric. “This cannot be another feel-good meeting where we shake hands, make statements and return a year later to the same unresolved issues and call it ‘progress’,” he said.

Tiong stressed that innovation and measurable outcomes are essential to tackle issues such as over-tourism, inequality and environmental strain. He pointed to local models such as Sabah’s Miso Walai Homestay, which safeguards rainforests while supporting 350 families, and Penang’s conservation-driven initiatives, including the Penang Heritage Trust.

To strengthen accountability, he said his ministry is working with the Statistics Department to pilot UN Tourism’s sustainability indicators and embed them in the Tourism Satellite Account. Businesses are also being encouraged to adopt benchmarks such as GSTC, ESG, B-Corp and INSTO.

This year, five Malaysian hotels won ASEAN Green Hotel Awards. “Growth alone is no longer enough. We must protect ecosystems, ease congestion, spread visitor flows and ensure value stays with local communities. Sustainable, inclusive transformation is not optional but essential,” Tiong said.

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