Kuala lumpur: Malaysia needs a managed energy transition that recognises both its current realities and long-term ambitions, Minister of Economy Akmal Nasrullah Mohd Nasir said today. He highlighted that a disruption to the country's energy supply can affect affordability, while the transition towards a more sustainable energy system must also ensure energy remains reliable and supports economic growth.
According to BERNAMA News Agency, the minister emphasized that the challenge is not to choose between energy security and energy transition, but to manage both in a way that strengthens Malaysia's long-term competitiveness. Speaking at the Oil and Gas Asia 2026, Akmal Nasrullah underscored the risks of excessive dependence on any single energy source, asserting that oil and gas will continue to play a crucial role in the economy and in ensuring energy security.
He explained that the 13th Malaysia Plan, the National Energy Policy, and the National Energy Transition Roadmap are guiding the policy direction towards greater diversification through nuclear energy, renewable energy, energy storage, hydrogen, and bioenergy. The aim is not merely to replace one energy source with another but to provide Malaysia with more options, reduce exposure to external shocks, and create new sources of economic value.
The minister acknowledged that the energy transition would necessitate managing difficult trade-offs, including how energy is priced. He emphasized the importance of keeping energy affordable, particularly for those in need of support, while also encouraging efficiency, investment, and the development of a more sustainable energy system.
He also highlighted the growing importance of regional cooperation, noting that initiatives like the ASEAN Power Grid can facilitate cross-border electricity trade, support renewable energy integration, and strengthen regional resilience. However, he stressed that ambition must be backed by infrastructure and investment.
Akmal Nasrullah pointed out that Malaysia requires a stronger and more flexible electricity grid, increased energy storage, and better integration between its energy, industrial, and digital infrastructure. The necessary investments will be substantial, and private capital must play a larger role, as government resources alone will not suffice.
He advised that investors need more than attractive returns, as energy projects often have long investment horizons. Investors also require confidence in the policy environment, which demands clear policy direction, predictable regulation, and consistent implementation.
"Policies will naturally evolve as technologies and markets change. What matters is that any adjustment is transparent, evidence-based, and implemented in a predictable manner," he added.
The minister concluded by emphasizing the importance of Malaysia remaining a reliable partner to investors, industry, and regional partners. He noted that policy credibility is integral to competitiveness, highlighting that local oil and gas services and equipment (OGSE) companies are already expanding beyond the domestic market. Around 600 companies have received support to expand their exports and develop their technology, generating more than RM2 billion in OGSE export sales through programmes organized by MATRADE.