Malaysia Needs Modernised Grid For Competitive Low-Carbon Economy - Fadillah
KUALA LUMPUR, Dec 15 (Bernama) -- Malaysia needs to modernise its power systems to build a low-carbon economy that is competitive, inclusive and resilient, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Energy Transition and Water Transformation Minister, said digitalising the economy with trustworthy artificial intelligence (AI) and translating climate ambition into bankable and investable projects are also crucial steps that must be taken for Malaysia to achieve this goal.
"We therefore call on utilities to bring forward projects that measurably reduce curtailment, accelerate connections and harden systems against extreme weather.
"We urge manufacturers and building owners to deploy AI-enabled efficiency, demand response and storage solutions, and to share lessons learned so aggregated demand can become a reliable system resource," he said.
He said this in his opening keynote address at the Global AI, Digital and Green Economy Summit 2025 here today.
Fadillah added that the government also expects data centre and AI compute investors to design for efficiency and clean energy from day one, working closely with utilities to manage grid impacts responsibly.
He noted that financiers are invited to properly price integrity, resilience and speed to impact, and to strengthen partnerships among ASEAN countries to expand interconnectors and harmonise rules so clean power can flow where it is needed most.
Fadillah also said the grid remains the primary bottleneck, and without faster expansion and digitalisation of transmission and distribution, renewable energy growth will stall.
At the same time, he noted that compute demand from AI training and inference is surging, reshaping load patterns and stressing local infrastructure.
Only projects that meet stringent efficiency and clean energy thresholds, and that co-invest in grid reinforcements where necessary, will be supported.
"Above all, integrity must remain the foundation of our efforts. Carbon credits, renewable energy certificates and so-called 'AI for good' initiatives must withstand independent scrutiny and full transparency.
"Within government, we are aligning policy, regulation and procurement to ensure that AI becomes an enabler of grid resilience," he said.
He added that Malaysia's direction is firm, focusing on building a modern grid, a digital economy powered by trustworthy AI, and climate finance systems that deliver real-world decarbonisation.
-- BERNAMA