Malaysia energy report

• The country targets a 31% share of renewables in the power mix in 2025 and a 45% reduction in the GHG intensity to the GDP in 2030.
• State-owned Petronas and TNB remain the dominant companies in their respective fields.
• Thermal generation represents more than 80% of the power mix, 49% of which from coal.
• A price ceiling for gasoline and diesel was set in 2021 to respond to higher crude prices.
• Gasoline and diesel are much cheaper than in ASEAN countries, while electricity prices are similar.
• Gas and oil still prevail in total energy consumption, while coal's share has increased.
• Oil's share in final energy consumption is decreasing in favour of gas and electricity, which have gained a foothold over the years.
• Despite delays linked to the COVID-19 pandemic, Malaysia expects to become a regional leader through large investments in the oil and gas sector. E&P activities are developed in deep-water offshore fields to offset the decline in local mature fields.
• Thermal power is expected to be reduced to 69% of the power mix and 7 GW of coal will be retired in 2039.

• Institutions & Energy Policy

  The Economic Planning Unit (EPU), a powerful planning body under the supervision of the Prime Minister, drafts the country's energy policy through its energy division (Energy Section). Decisions are taken by a restricted council of ministers, the "Cabinet Committee on Energy".

• Energy Companies

  Electricity:

  Three electricity companies dominate the country's 3 geographical areas: TNB (Tenaga Nasional Bhd) for the Peninsula; Sarawak Energy Bhd for Sarawak and SESB (Sabah Electricity Sdn. Bhd) for Sabah. TNB was partially privatised following a first sale of 27% of the capital in 1992 and further sales -the latest in 2019- bringing the public stake down to 27.3%.

• Energy Supply

  Oil:

  Oil production has been declining by 9%/year since 2018, reaching 27.5 Mt in 2020, after remaining stable over the previous ten years. The development of E&P activities in deep-water fields of the eastern region such as Gumusut-Kakap or Kikeh has enabled the declining outputs from the mature fields of the Peninsula to be offset.

• Energy Prices

  Oil:

  In an attempt to reduce its fiscal deficit, Malaysia cut fuel subsidies in 2013, which saved US$1bn in 2014 and resulted in prices increasing by US$0.06/l. Low-income families benefited from higher cash pay-outs to soften the impact of the price hike. Between 2014 and 2018, the Government removed subsidies on gasoline (RON95) and diesel.

• Energy Consumption

  In 2020, consumption per capita was 2.7 toe. This is higher than neighbouring countries. Electricity consumption per capita has increased from 3 900 kWh per capita in 2010 to 4 600 kWh in 2020.

  Graph: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

  

• Issues & Prospects

  Electricity:

  In March 2021, KeTSA released its generation development plan 2021-2039. The plan was prepared using a moderate economic recovery scenario, where power demand was estimated to increase by 0.9%/year until 2030 and by 1.7%/year through 2039. Thermal power generation in the power mix is expected to be reduced to 69% in 2039 (compared to 84% in 2020).

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the Malaysia energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed electric capacity by source (2020, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2020, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices for industry and households (US$c/kWh)
• GRAPH 7: Consumption trends by energy source (Mtoe)
• GRAPH 8: Total consumption market share by energy (2020, %)
• GRAPH 9: Final consumption market share by sector (2020, %)

In the Malaysia energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator.

The Malaysia country dashboards are complemented with country forecasts from EnerFuture (excel file) with scenario comparison.

Data included in the excelsheet:

• Demand: Primary energy consumption, final energy consumption, by fuel, by sector.
• Power: Electricity generation & capacities, by technology.
• CO₂: Total CO₂ emissions.
• Macro-economy: Main macro-economic assumptions.
• Key indicators: Energy intensity, share of renewables, CO₂ emissions per capita and per unit of GDP.