Malaysia Needs Managed Energy Transition That Recognises Current Realities And Long-term Ambitions - Minister

KUALA LUMPUR, Sept 3 (Bernama) -- Malaysia needs a managed energy transition that recognises both its current realities and long-term ambitions, Minister of Economy  Akmal Nasrullah Mohd Nasir said today. 

He highlighted that a disruption to the country’s energy supply can affect affordability, while the transition towards a more sustainable energy system must also ensure energy remains reliable and supports economic growth.

"The challenge is therefore not to choose between energy security and energy transition. It is to manage both in a way that strengthens Malaysia’s long-term competitiveness," he said in his keynote address at the Oil and Gas Asia 2026 here today. 

Akmal Nasrullah also stressed that excessive dependence on any single source creates vulnerability, and that oil and gas will continue to play an important role in the economy and in ensuring energy security.

"This is why the 13th Malaysia Plan, the National Energy Policy and the National Energy Transition Roadmap guide the policy direction towards greater diversification through nuclear energy, renewable energy, energy storage, hydrogen, and bioenergy," the minister said.

He added that the objective was not simply to replace one energy source with another but to give Malaysia more options, reduce exposure to external shocks and create new sources of economic value.

Akmal Nasrullah said the energy transition would also require the government to manage difficult trade-offs, including how energy is priced.  "We need to ensure that energy remains affordable, particularly for those who need support, while providing the right signals for efficiency, investment and the development of a more sustainable energy system," he added. 

Meanwhile, regional cooperation will also become increasingly important, and the push for interconnectivity goes beyond trade or diplomacy as it extends into energy.  Akmal Nasrullah said initiatives such as the ASEAN Power Grid can facilitate cross-border electricity trade, support renewable energy integration and strengthen regional resilience.

However, ambition must be supported by infrastructure and investment, he added.

The minister said Malaysia would need a stronger and more flexible electricity grid, greater energy storage and better integration between its energy, industrial and digital infrastructure. The required investment will be substantial, and government resources alone will not be sufficient, he noted, adding that private capital must therefore play a larger role. 

"But investors need more than attractive returns. Energy projects often have investment horizons of twenty or thirty years, so investors also need confidence in the policy environment in which they will operate," he noted, advising that this required clear policy direction, predictable regulation and consistent implementation.

"Policies will naturally evolve as technologies and markets change. What matters is that any adjustment is transparent, evidence-based and implemented in a predictable manner," he added.

The minister said Malaysia must remain a reliable partner to investors, industry and its regional partners.

“For Malaysia to sustain its transformation, we must remain a reliable partner - to investors, industry and our regional partners. Policy credibility is therefore not separate from competitiveness. It is part of it," Akmal said, adding that the country is already seeing local OGSE (oil and gas services and equipment) companies expand beyond the domestic market. 

He noted that around 600 companies have received support to expand their exports and develop their technology, generating more than RM2 billion in OGSE export sales through programmes organised by MATRADE.

-- BERNAMA