MALAYSIA must make energy reform a central part of its economic growth strategy as reliable, affordable and cleaner power becomes increasingly important to attracting investment, strengthening industries and creating quality jobs, Economy Minister Akmal Nasrullah Mohd Nasir said today.
He said energy policy could no longer be treated solely as a sectoral or regulatory issue, as the cost, reliability and sustainability of energy would increasingly influence investment decisions and Malaysia’s competitiveness.
“Energy reform is no longer only a sectoral or regulatory matter. It is central to economic policy,” he said in his keynote address at Energy Regulatory Insights 2026 in Petaling Jaya on Tuesday.
Akmal said Malaysia’s strong economic performance and investment pipeline meant energy and economic planning had to move together.
Malaysia’s economy grew 6.0 per cent in the second quarter of 2026, while approved investments reached RM218.5 billion in the first half of the year, involving 2,746 projects expected to create 99,030 jobs.
“These are major economic opportunities. It also means that energy planning and investment planning can no longer proceed on separate tracks,” he said.
He said sectors expected to drive Malaysia’s next phase of growth, including advanced manufacturing, semiconductors, digital services, data centres and modern logistics, would require reliable electricity, stronger grids and increasing access to cleaner energy.
“Energy resilience is an essential part of economic resilience,” he said.
Akmal added Malaysia’s energy transition could also generate new investment and employment opportunities by making the country more attractive to multinational companies seeking cleaner energy sources.
He cited large-scale solar development as an example of how energy policy could be translated into investment and jobs, with the latest LSS PETRA 5+ programme expected to mobilise more than RM6 billion in investment and create up to 12,000 jobs.
“This is what delivery should achieve: clear policy translated into commercially viable projects, greater private investment and quality jobs,” he said.
However, Akmal stressed that energy transition was not simply about increasing renewable generation.
Malaysia would also need to modernise its electricity grid, expand energy storage, improve system planning, digitalise infrastructure and strengthen energy efficiency to ensure the system could support rising demand reliably.
“Let me put this plainly: the energy transition will not be won by megawatts alone. It will be won by whether the grid can connect, balance and deliver those megawatts reliably,” he said.
Akmal said the Government’s priority was to build an energy system that could support investment, industrial expansion and higher-value economic activity while keeping energy affordable and reliable.
He said the transition must also create opportunities for Malaysian companies to move into higher-value areas such as engineering, energy management, grid solutions, energy storage and digital energy services.
“For businesses and investors, reform must mean reliable supply, competitive costs, access to cleaner energy and confidence that infrastructure will keep pace with demand,” he said.
The minister added the success of energy reform should ultimately be measured by its contribution to the economy and the people, rather than by the amount of new generating capacity announced.
“Success must be seen in reliability delivered, costs managed, productivity gained, emissions reduced and Malaysian capabilities built - not in megawatts announced alone,” he said. - September 8, 2026
