MIDF positive on Malaysia power sector

MIDF Research has maintained its 'positive' stance on the power sector on the launch of the projects under the Economic Transformation Programme (ETP) for the power sector.

In its research note, MIDF said under the ETP, the government has outlined three major areas -- deployment of nuclear energy, solar capacity build-up andthe development of hydropower.

It said Tenaga Nasional Bhd would become the major beneficiary.

"It will remain the dominant force in the development of renewable energy,and this will bring more positives than negatives to the company.

"We do not expect a major shift in its business fundamentals anytime soon, with the exception of an impending tariff review," it said.

MIDF said overall, the ETP would have a neutral impact on the sector, given the fact that the gestation period for the benefits of renewable energy to be reaped was rather long. - Bernama

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