KUALA LUMPUR February 5, 2026 – Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Dato’ Sri Fadillah Yusof, today emphasized Malaysia’s accelerating progress in energy transition during his participation as a panelist at the Forum Ekonomi Malaysia (FEM) 2026.
Speaking on the topic “Managing Sustainability and Energy Transition”, Fadillah shared that as of December 2025, Malaysia has reached 31% renewable energy capacity — surpassing the national target earlier than anticipated. This milestone aligns with the National Energy Policy (NEP) 2022–2040 and the National Energy Transition Roadmap (NETR).
The session, moderated by Datuk Shahril Azuar Jimin, Group Chief Sustainability Officer of Maybank, featured distinguished panelists including Ms. Kim-See Lim, Chief Investment Officer (Public Sector, Region 1) at the Asian Infrastructure Investment Bank (AIIB), and YBhg. Dato’ Ir. Muhamad Nazri Pazil, Senior Chief Strategy, Regulatory & Sustainability Officer at Tenaga Nasional Berhad (TNB).
Fadillah highlighted energy efficiency as the “first fuel” in the clean energy transition, noting it as one of the fastest and most cost-effective ways to reduce carbon emissions. Malaysia has exceeded its initial cumulative electricity savings target under the National Energy Efficiency Action Plan (NEEAP) 2016–2025, achieving 60,866 GWh in savings against the earlier goal of 52,233 GWh.
He also underscored Sarawak’s strategic role as a regional green energy hub, leveraging large-scale hydropower resources through the development of a Hydro Hub. This initiative not only strengthens domestic energy security but also holds potential to support cross-border energy integration via the ASEAN Power Grid.
Key ongoing initiatives driving Malaysia’s renewable energy ecosystem include:
– Enforcement of the Energy Efficiency and Conservation Act (EECA) 2024
– Implementation of Large-Scale Solar Programme (LSS6)
– Expansion of Feed-in Tariff (FiT) schemes
– Strengthening of the Corporate Renewable Energy Supply Scheme (CRESS)
– Rooftop solar promotion through the ATAP programme
Looking ahead, Malaysia is advancing next-generation technologies such as green hydrogen and Carbon Capture, Utilisation and Storage (CCUS), supported by the newly enacted CCUS Act 2025. The establishment of the National Energy Transition Fund (NETF) is providing innovative financing mechanisms to accelerate NETR implementation.
“Energy transition is not merely a future requirement — it is a responsibility we hold today for future generations,” Fadillah stated. “Through close collaboration between government, industry, and society, we are building a cleaner, more resilient, and inclusive energy ecosystem. These are the steps we take today to ensure the next generation inherits a prosperous, sustainable, and thriving Malaysia.”
The Deputy Prime Minister concluded by reaffirming Malaysia’s commitment to a balanced, just, and accelerated transition toward a low-carbon future under the Malaysia MADANI framework.
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