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.
• A domestic Emissions Trading System is planned to be launched.
• The oil and gas sectors are dominated by Petronas.
• Thermal generation represents 80% of the power mix, 52% of which from coal.
• Three CCGT power plants totalling 4.5 GW were commissioned in 2021.
• Since 2020, fuel prices are fixed according to a "managed floating" system.
• Gasoline and diesel are much cheaper than in ASEAN countries.
• Oil and gas represent 70% of total consumption. Electricity consumption has nearly doubled since 2000.
• Petronas is partnering with various companies to explore the potential and viability of CCS technology.
• Thermal power is expected to be reduced to 69% of the power mix and 7 GW of coal will be retired by 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 8%/year since 2018, reaching 28 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 2020, the Government removed subsidies on gasoline (RON95) and diesel to reduce its fiscal deficit.

• Energy Consumption

  In 2020, consumption per capita was 2.8 toe. This is higher than neighbouring countries. Electricity consumption per capita has increased from 3 900 kWh per capita in 2010 to 4 700 kWh in 2020.

  Graph: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

  

• Issues & Prospects

  Oil:

  After a slash-cut in Petronas' planned capital expenditures to US$8bn in 2020 due to the COVID-19 pandemic, the company now intends to take advantage of the current soaring oil prices and increase its CAPEX to MYR 40-45bn/year (US$9-10bn/year) over 2022-2027.

• 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.