KUALA LUMPUR, Nov. 5 (Xinhua) -- Energy-intensive projects will be assessed by infrastructure readiness, energy efficiency, local supplier participation, skills development and wider economic benefits and not just the investment value they bring, Malaysian Economy Minister Akmal Nasrullah Mohd Nasir said on Thursday.
Malaysia's energy transition must also be measured by the economic value it created and the country's ability to develop, retain and eventually export that value, Akmal said in his keynote address at the Clean Energy Transition Asia (CETA) 2026 Summit and Exhibition.
"Capital expenditure of approximately 42.8 billion ringgit (10.5 billion U.S. dollars) has been allowed for the period 2025-2027 to strengthen and modernize the electricity network in Peninsular Malaysia. This includes the 15 billion ringgit (3.7 billion U.S. dollars) grid-reinforcement investment, which will further enhance the resilience and readiness of our electricity system to support the energy transition and growing demand," he said.
Akmal noted that data centers and advanced manufacturing, including semiconductors, were increasing the need for reliable electricity, with peak demand in Peninsular Malaysia projected to grow by about five percent annually, from around 21 gigawatts (GW) in 2026 to more than 33 GW by 2035, creating opportunities for investment in generation, grid infrastructure, energy storage, cooling and power electronics.
He also said Malaysia anticipated the need for about nine GW of additional gas-fired generation capacity around 2030, subject to ongoing review by the Ministry of Energy Transition and Water Transformation and the Energy Commission, to meet rising electricity demand, particularly from data centers and advanced manufacturing.
"As mature domestic gas fields face declining production, liquefied natural gas imports will have an increasing role in meeting incremental demand. The objective is not to position gas as an alternative to the transition, but to manage its role responsibly while moving towards a more diversified, lower-carbon energy system," he added. ■