Energy-intensive projects need assessment beyond investment size, says minister
Malaysia expects rising electricity demand from data centres and advanced manufacturing, with grid upgrades and additional generation capacity in focus.
Economy Minister Akmal Nasrullah Mohd Nasir said Malaysia should weigh infrastructure readiness, efficiency and domestic economic benefits when assessing energy-intensive projects, rather than focusing only on investment amounts.
Speaking in Kuala Lumpur on Nov 5 at the Clean Energy Transition Asia (CETA) 2026 Strategic Summit and Exhibition, he said assessments should consider participation by local suppliers and the development of skills. The energy transition should also be judged on Malaysia’s ability to create, retain and eventually export economic value, he said.
Akmal Nasrullah said approximately RM42.8 billion in capital expenditure had been allowed under Regulatory Period 4 for 2025-2027 to upgrade Peninsular Malaysia’s electricity network. That allocation includes RM15 billion for grid reinforcement highlighted in Budget 2027.
He cited data centres and advanced manufacturing, including semiconductors, as drivers of demand for reliable power. Peak electricity demand in Peninsular Malaysia is projected to increase by about 5% annually, he said. The projections put demand at around 21 gigawatts (GW) for 2026 and more than 33 GW for 2035.
Malaysia also anticipates needing about nine GW of extra gas-fired generation capacity around 2030, he said. That requirement remains under review by the Ministry of Energy Transition and Water Transformation and the Energy Commission.
With production declining at mature domestic gas fields, he said imported liquefied natural gas would play a larger role in meeting additional demand. He also urged utilities and developers to engage Malaysian suppliers and talent.
