Malaysia unveils 2035 energy plan targeting $21.5 billion in savings
Malaysia's renewed 10-year energy efficiency plan targets $21.5 billion savings and an 11.6% cut in energy demand by 2035.
Malaysia has launched a renewed 10-year blueprint to boost energy efficiency, projecting cumulative savings of around $21.5 billion. The updated National Energy Efficiency Action Plan (NEEAP), which runs through 2035, targets an 11.6% reduction in energy demand, according to the energy transition and water transformation ministry.
The plan is expected to deliver cumulative energy savings of 815,382 terajoules compared with business-as-usual forecasts. That translates into a cut of 26.1 million metric tons of CO2-equivalent emissions.
Economy Minister Akmal Nasir said the first NEEAP, which covered 2016 to 2025, exceeded its goals. It delivered electricity savings of 60,886 gigawatt-hours, worth approximately 16.1 billion ringgit ($3.9 billion), against a target of 52,233 gigawatt-hours. Those savings were equivalent to an estimated reduction of 35.6 million tons of CO2-equivalent.
The renewed push comes as Malaysia positions itself as Southeast Asia's fastest-growing data-centre hub, attracting billions in investment from global tech firms such as Amazon and Microsoft. Power demand is expected to climb sharply amid the AI infrastructure boom, prompting the government to press companies and investors to prioritise energy sustainability.
In 2023, Malaysia enacted a law obliging its largest energy consumers to adopt power-saving measures. That legislation supports the country's pledge to cut economy-wide greenhouse gas emissions by 45% by 2030 and reach net-zero by 2050.