The 2009 Budget focused on the National Energy Plan. The points raised were relevant to current demands of solar energy as well as energy efficient equipment. The Environment Desk of Fomca would like to highlight few issues related to this in the 2009 budget.

Biofuel being regarded as a Renewable Energy source needs further careful and detailed study. Biofuel can be a substitute but the environmental implications as well as food security implications are still there.

For example, palm oil converted into biofuel will be a lucrative industry but it may cause more monocrop plantation and this will have long term effects on soil fertility and may eventually cause yield reduction. Brazil would be an example of this situation. At the same time, it may cause more deforestation. Industries, being profit driven, will tend to focus more on biofuel rather than cooking oil and other consumer essentials.

We appreciate the government's commitment towards energy efficient equipment. However, mandatory Energy Efficient (EE) labeling must be made available. Currently, only refrigerators have this labeling, which is voluntary.

Mandatory EE labels will ensure consumers are not cheated with claims by retailers. Such labeling has been suggested by Fomca and we hope immediate development on the goods mentioned in the budget takes place.

The recognition of solar technology is in line with Fomca's call to the government to do so. There is serious need to develop the local solar industry. The current tax exemptions an excellent way to help this industry.

However, the stress must be on developing local solar technologies which are on par with leading international players such as Germany. We would also like to recognise the efforts by Pusat Tenaga Malaysia in promoting solar technologies locally.

Hybrid cars will be the ‘new kids on the block’. It is time that Malaysia embraces more energy efficient technologies and give them due recognition.

We also believe that the call to local car manufacturers to develop such cars is important. We hope they can build reliable and efficient vehicles as it is the quality that is important, not quantity.

Overall, the National Energy Plan should carry out a detailed study on all cross cutting sectors related to fuel-energy usage. We also understand that currently, the Economic Planning Unit is conducting a long term study on national energy demand.

We hope that upon completion, the results will be made available to all, in order to understand our future energy trends and how we can fulfill demand. This will ensure a proper implementation of long term plans and active stakeholder participation.

The writer is Programme Manager (Environment Desk) of the Federation of Malaysian Consumers Associations (Fomca).