15 Apr 2025 PGF Capital Poised to Benefit from Victoria’s expanding insulation incentives
KUALA LUMPUR: Main market-listed leading insulation producer in Southeast Asia, PGF Capital Bhd welcomed the recent decision by the Victorian state government of Australia on April 8, 2025, to reduce the cost of ceiling insulation installations under the Victorian Energy Upgrades (VEU) programme, commencing early 2026.
This initiative is anticipated to drive growth in demand for its insulation solutions across c, the most densely populated state in Australia, with a population of over 7 million.
The VEU programme will halve the average cost of ceiling insulation from approximately AU$3,000 to AU$1,500, helping households to save an estimated AU$400 annually on their energy bills.
PGF Capital executive director and group CEO Fong Wern Sheng said the Victoria state government’s proactive initiative under the VEU programme is a positive step, and PGF Capital is prepared to support its success.
“Our established insulation manufacturing capabilities, coupled with our strategic network of distribution hubs and dedicated fleet in key Australian cities like c, the capital city of Victoria, ensure our readiness to provide a consistent and timely supply of insulation solutions to meet the growing need of Victorian households,” he said in a statement.
Addressing a critical need, the Victorian State Government data reveals that 200,000 homes lack any insulation, and nearly 60% of homes across the State either have uninsulated ceiling or under-insulated.
The VEU programme provides financial incentives for energy efficiency improvements through a tradable certificate mechanism.
The VEU programme’s track record, having already supported more than 170,000 businesses and 2.4 million households in upgrading appliances and equipment and saving more than AU$440 million on energy bills since 2009, underscores the significant market opportunity for insulation providers like PGF Capital.
Leveraging its established presence in the Australian insulation market since 2006, PGF Capital is proactively increasing its manufacturing capacity to meet anticipated growth, including the demand generated by the VEU programme.
The group’s current 25,000 metric ton per year plant, located in Perai, Penang, will be complemented by a new 40,000 metric ton facility under development in Kulim, Kedah, expected to be completed by the first half of 2026.
This expansion will result in a total manufacturing capacity of 65,000 metric tons, enabling PGF Capital to effectively capitalise on future market opportunities.
“Building on that, we believe our flagship Ecowool brand is key to making the most of this opportunity. Ecowool’s long-standing reputation for consistent high quality, achieved through stringent production standards, provides the reliability that homeowners and professionals depend on for effective and trustworthy insulation,” Fong said.
Separately, PGF Capital confirms that the recently announced tariffs by the US government will not have any material impact on its operations.
With over 70.0% of exports focused on the Oceania region and approximately 20.0% of revenue derived from domestic sales, the Group has no current exports to the US, thus insulating PGF Capital from these tariffs.
As of November 30, 2024, PGF Capital maintained a healthy financial position.
The group reported a positive net cash balance of RM8.7 million, while its gearing ratio remained low at 0.11 times.
Net asset per share stood at RM1.36, reflecting continued balance sheet strength.
