Malaysia’s efforts to develop a sustainable aviation fuel (SAF) industry must balance production costs with airlines’ ability to afford cleaner fuel, as the country seeks to reduce aviation emissions without making air travel less accessible, The Malaysian Reserve reported.
Civil Aviation Authority of Malaysia (CAAM) Deputy Chief Exective Officer Captain Mohd Radzi Mohamed Alias said the commercial viability of domestic SAF production would depend on feedstock availability, supply reliability, processing costs and the prices airlines could absorb.
Speaking at Aviation Sustainability Day 2026 in Sepang on behalf of Transport Ministry Deputy Minister Datuk Hasbi Habibollah, he said Malaysia could build on its established energy sector, manufacturing capabilities and logistics infrastructure to develop domestic SAF production.
Potential feedstocks include used cooking oil, algae cultivation residues and other sustainable biomass. However, their commercial potential would depend on securing reliable supplies and keeping production costs competitive.
Mohd Radzi said the transition could create opportunities for local companies in emerging aviation technologies and supply chains, while attracting investment and generating skilled employment. He stressed that collaboration among the government, airlines, fuel producers, technology providers and financial institutions would be essential to address infrastructure, financing and regulatory challenges.
Malaysia’s Aviation Decarbonisation Blueprint provides a framework for the sector to achieve net-zero carbon emissions by 2050. Beyond SAF, the country could also explore high-integrity carbon projects supported by measurable and verifiable environmental standards.
The government will continue engaging industry stakeholders to address implementation challenges and develop practical solutions for the aviation sector’s long-term sustainability goals.
