KUALA LUMPUR, MALAYSIA Dec 15, 2025 – Deputy Prime Minister Datuk Seri Fadillah Yusof emphasised that modernising the national electricity grid is a fundamental necessity and not an option, in order to support the transition to a competitive, inclusive, and resilient low-carbon economy.
He said this while officiating the Global AI, Digital and Green Economy Summit 2025 at The Majestic Hotel, Kuala Lumpur. According to Fadillah, who is also the Minister of Energy Transition and Water Transformation, the energy transition cannot rely solely on adding green capacity but requires a comprehensive transformation of the national energy system, encompassing generation, transmission, distribution, and grid operations.
“The modernisation of the electricity grid is a fundamental necessity to ensure that the growth of renewable energy can be implemented effectively, as well as to support the digital economy and the rapid development of artificial intelligence (AI) technology,” he said.
The government, in this regard, is calling on utility companies to submit projects capable of reducing supply constraints, accelerating connections, and strengthening the grid system to withstand extreme weather challenges.
He also encouraged manufacturers and building owners to leverage energy efficiency, demand response, and AI-based energy storage systems.
Fadillah praised the ongoing investments by Tenaga Nasional Berhad (TNB) in AI-based planning, automation, and energy storage as important steps towards a smarter and more adaptive grid.
He stressed that the growth of the digital economy and data centres must align with energy efficiency and the use of clean energy, where only AI projects and digital infrastructure meeting these standards will receive government support.
At the same time, regional ASEAN cooperation through cross-border energy integration will continue to be strengthened to enhance energy security and reduce system costs.
“Modernising the energy grid is not merely a long-term agenda, but an urgent necessity to ensure Malaysia remains competitive in the global low-carbon economy,” Fadillah asserted.
The summit is expected to discuss issues related to AI, digitalisation, and the green economy to support the nation’s energy transition agenda.
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