However, as a response to its clients’ escalating financial pressures due to rising electricity tariffs, KAB underwent a strategic transformation to establish the sustainable energy solutions (SES) group, comprising three subdivisions—energy-efficient solutions (EE), renewable energy (RE), and clean energy (CE) solutions. The evolution, led by Dato’ Lai Keng Onn, founder, executive deputy chairperson, and group managing director of KAB, was not only a reaction to financial strains; rather, it was inspired by his visionary understanding of the potential inherent in generating electricity from waste and renewable natural resources. This realization ignited a strategic pivot towards sustainability, laying the foundation for the SES group’s formation.
After delivering an extensive amount of pre-construction and construction of value engineering electrical works for clients, Dato’ Lai identified a gap that KAB could bridge. He recognized the significance of embracing technology and made strides into the energy efficiency area as a starting point, with the intention of branching out to establish a sustainable competitive advantage for the company.
Between 2018 and 2023, KAB continued to explore other potential solutions within the SES group and secured sizable projects for segment development. Visible earnings supported by financial results and growth prospects prompted further diversification, culminating in a transformative rebranding initiative on June 7, 2023. This marked KAB’s official rebirth as an entity equipped with augmented technical prowess and a renewed vision, emphasizing its commitment to sustainability and innovation in the energy sector.
KAB aims to maintain its growth as a comprehensive One-stop Provider of Energy solutions in Malaysia and Southeast Asia. It focuses on the development and reinforcement of viable alternative solutions to tackle operational challenges faced by businesses, while also adapting to changing needs. The business puts a strong emphasis on helping its clients to become valued entities and stakeholders within their own supply chain. This approach, coupled with KAB’s unique competitive edge, has created opportunities for its business and aligned with the growing interest in the global shift for energy diversification and sustainability.
KAB’s efforts are instrumental in contributing to the global energy transition movement, anchored by pragmatic strategies and clear objectives. The company is deeply invested in the development of a resilient and sustainable energy ecosystem, reflecting its dedication to addressing the challenges and opportunities of the modern energy landscape. Through its innovative solutions and strategic initiatives, KAB not only navigates the energy transition but actively shapes the future of sustainable energy in Southeast Asia.
The Power of Variety: Diverse Sustainable Energy Solutions
“There is no one-size-fits-all solution. Variety is what makes KAB a unique player because we offer more than just one solution. As a one-stop provider, we offer a variety of energy options,” says Dato’ Lai.
As we advance, we remain united in our mission to cultivate a business that prioritizes sustainability and aims to establish a significant regional footprint. 2023 is a pivotal year as it has positioned us at the forefront of the Sustainable Energy Solutions (“SES”) sector, underlining our successful innovative expansion with sustainability as an integral part of the business and organization.
Of particular significance is the co-generation system, which revolves around a prime mover—an engine that converts fuel into useful work, paired with an alternator and heat exchangers. This setup enables the recovery and reuse of heat from the engine exhaust outlet as valuable thermal energy. The captured heat, which would otherwise go to waste, can be harnessed to produce thermal energies in various forms such as steam, hot water, and chilled water.
The RE segment focuses on harnessing renewable energy sources to diversify the energy mix and reduce reliance on fossil fuels. Its offerings include solar photovoltaic (PV) systems, hydroelectric power, and waste-to-energy (biogas and biomass) technologies. These solutions provide clients with access to clean and renewable energy sources tailored to their specific requirements, contributing to Malaysia’s renewable energy capacity and environmental sustainability goals.
The EE solutions segment offers innovative technologies and strategies to improve energy efficiency and generate energy savings across various sectors. KAB provides chiller optimization and building management systems to improve HVAC system performance and energy efficiency. By implementing advanced energy-efficient solutions, clients can save money, reduce environmental impact, and enhance operational efficiency.
Within the Sustainable Energy Solutions (SES) framework, KAB introduces a paradigm of financial flexibility with a range of financing options for clients. This innovative approach not only facilitates the adoption of sustainable practices but also cultivates a more resilient business ecosystem.
Customization of energy solutions is a cornerstone of SES strategy. Beginning with a detailed audit conducted by a seasoned team of engineers and technicians, KAB meticulously crafts bespoke strategies that align with each client’s unique operational needs and sustainability goals. This personalized approach ensures that every solution is not just a service but a strategic partnership toward achieving netzero emissions.
Subsequently, clients are presented with three distinct business models, each offering unique advantages and fostering opportunities for collaboration. One option allows organizations to purchase and self-manage energy solutions, providing them with full control over their energy infrastructure. Alternatively, clients can opt for a collaborative partnership with KAB to jointly develop and co-own energy plants or projects, leveraging the expertise and resources of both parties for mutual advancement.
For organizations seeking to minimize upfront investment costs, a zero-capex scheme is offered. Under this arrangement, KAB invests in and owns the energy plant and/or assets, allowing clients to access reliable electricity at a discounted rate without the financial burden of infrastructure ownership.
Regardless of the chosen energy solution and business model, organizations can enhance their credibility and recognition by obtaining renewable energy certificates. These certificates serve to offset Scope 2 carbon emissions stemming from their operational activities. It is a tangible testament to their commitment to sustainability and environmental stewardship, setting them apart in the market and strengthening their sustainability portfolio as responsible corporate entities.
Sustainable Solutions in Action
KAB’s leadership in the SES sector is unmistakably demonstrated through its proven track record. A prime example of its success lies in its project advancement with a client serving over 6,000 commercial airplanes globally and headquartered in France, aiming to implement a groundbreaking waste recovery technology solution. This unique plant, the only one of its kind in Malaysia, has garnered significant attention and interest, leading to multiple site visits for external stakeholders such as bankers and investors. The commitment to maintaining the site’s condition and ensuring smooth plant operations has earned recognition from KAB’s Chairman, Dr. Ong Peng Su. His acknowledgment is particularly noteworthy given his extensive experience with numerous plants, further validating KAB’s capabilities.
Prior to KAB’s intervention, the client grappled with the challenge of managing toxic waste gas emissions during their manufacturing processes. Government regulations mandated stringent treatment measures for this gas before it was released into the environment, prompting the client to resort to flaring as a compliance measure.
However, the implementation of KAB’s waste heat recovery system resulted in a significant shift for the client. Not only did they remove the need to burn the toxic gas, but also realized significant energy savings, with 29,515,892 kWh saved by the end of 2023 and a total of 168,000,000 kWh will be saved over the entire concession period. KAB’s innovative waste heat recovery process, known as the organic rankine cycle, used the heat generated by the toxic gas to power the client’s operations and continues to generate sustained reusable power, ensuring that it is not wasted.
Previously tethered to electricity sourced from the national grid, predominantly fueled by coal and diesel, the client experienced a remarkable transformation. Using KAB’s cutting-edge technology as their energy alternative, they emancipated themselves from the grid and reduced their reliance on non-renewable energy sources. In addition, the cessation of gas consumption for flaring purposes resulted in significant cost savings while also promoting a healthier environmental approach and generating additional benefits.
The firm’s leadership in the SES landscape is further demonstrated by its collaboration with PETRONAS in 2023 to construct Malaysia’s single largest gas engine power plant, a unique project departing from the conventional combined cycle power plant model. Unlike typical power plants, this PETRONAS facility, termed “Open Cycle / Simple Cycle,” eschews heat recovery, opting instead for gas engine technology, which consumes less natural gas compared to gas turbine alternatives. This partnership showcases KAB’s technical prowess in undertaking and executing projects of considerable scale and complexity and also signifies its commitment to advancing Malaysia’s environmental, social, and governance (ESG) objectives, positioning the firm as a pivotal player in catalyzing the nation’s shift from coal to renewable energy sources for electricity generation.
KAB stands proudly as a constituent of both the FTSE4Good Bursa Malaysia Index and the FTSE4Good Bursa Malaysia Shariah Index as 1 of the 11 new inclusions in 2023, underscoring its commitment to ethical and sustainable business practices. Earning 3-star ESG Ratings on the FTSE Russell Assessment for three consecutive years, the company exemplifies its dedication to ESG principles.
In pursuit of its sustainability goals, KAB has released comprehensive relevant ESG reports, outlining clear strategies and decarbonization plans. These include ambitious targets such as a 42 percent decrease in Scope 1 and 2 emissions by 2030, followed by a remarkable 90 percent reduction by 2050. Moreover, the accuracy of the Group’s greenhouse gas inventory is ensured through verification by a third-party consultant with 20 years of experience. This consultant is certified under the GHG protocol standard and registered under the Malaysia Voluntary Carbon Market (VCM) Directory, established by Bursa Malaysia and Malaysian Green Technology and Climate Change.
To further accelerate its sustainability efforts, KAB has launched the ASCENT ESG Campaign. This initiative aims to drive internal transformation and have a beneficial impact on ESG practices in the broader industry. It reaffirms its commitment to sustainability leadership and its role as a catalyst for positive change in the corporate landscape.
A pivotal force behind its myriad successes, accolades and forward-looking initiatives is its esteemed leadership. At the helm stands Dato’ Lai, a distinguished Malaysian entrepreneur, his extensive expertise and visionary leadership have been instrumental in guiding KAB to become a pioneer and a leader from engineering to the energy industry.
Dato’ Lai embarked on his professional journey after earning a Bachelor of Science in Construction Management from Greenwich University, Australia, in 2002. Over the course of seven years as a senior project manager, he honed his skills and gained invaluable experience before venturing into entrepreneurship to establish KAB, leaving behind a lasting legacy.
Dato’ Lai serves as the deputy executive chairman cum group managing director, and a member of the risk management committee. His substantial shareholdings reflect his deep-seated commitment to KAB’s success. Through his guidance and unwavering dedication, Dato’ Lai is navigating KAB towards new pinnacles of innovation, sustainability and excellence. His strategic foresight and entrepreneurial prowess are instrumental in the company’s relentless pursuit of distinction.
In anticipation of the future, KAB envisions itself as a key driver in Malaysia’s transition towards a sustainable energy landscape amid global energy crises. A foreseeable increase in investments to meet the rising demand for energy commodities and improved access to electricity have made energy a competitive sector. The firm demonstrated its capabilities and expertise by fulfilling clients’ priorities through the reduction of energy costs and improved operational efficiency using CE, RE and EE technologies. As KAB persists in strengthening its resilience within the dynamic energy landscape, its expansion and development endeavors will hasten sustainable change, positioning it as a distinctive leader and solutions provider in the field.
MALAYSIA ONE-STOP ENERGY & ENGINEERING SOLUTIONS PROVIDER
