Malaysia renews energy efficiency plan through 2035

Malaysia has renewed its National Energy Efficiency Action Plan (NEEAP), extending the strategy through 2035. The updated plan aims to reduce energy demand by 11.6 per cent compared to business-as-usual projections, targeting approximately US$21.5 billion in cumulative savings and a reduction of 26.1 million metric tons of CO2-equivalent emissions.

The renewal follows the success of the initial plan (2016–2025), which exceeded its electricity savings target by delivering 60,886 gigawatt-hours, valued at roughly RM16.1 billion (US$3.9 billion). Economy Minister Akmal Nasir noted that the previous phase also avoided an estimated 35.6 million metric tons of CO2-equivalent emissions.

The initiative arrives as Malaysia becomes the fastest-growing data centre hub in Southeast Asia, attracting significant investments from global technology firms such as Amazon and Microsoft. This surge in AI infrastructure and digital market growth is expected to drive substantial increases in electricity consumption, necessitating more robust energy management and sustainability measures.