Malaysia will need to deploy 9 GW of gas-fired generation capacity by 2032, according to the country’s Minister of Economy, who made the remarks at a conference, as it faces rising electricity demand while progressively phasing out coal-fired power generation, with the last coal-fired power plant expected to be retired by 2044 (Bernama, 08/09/2026). Electricity demand is increasing due to factors such as population growth and higher consumption from energy-intensive industries, particularly data centres.
According to Enerdata’s Global Energy & CO₂ Data database, coal represented 31% of Malaysia’s installed capacity in 2025 (13.3 GW) and 46% of its power generation mix. Natural gas accounts for 44% of the country's installed capacity in 2025, with 18.6 GW, and 32% of the power mix. Enerdata’s Power Plant Tracker indicates that around 1 GW of gas-fired capacity is currently being built, with a further 4.6 GW in the development pipeline.
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