Energy Efficiency Policies in Malaysia: A Critical Evaluation from the Sustainable Development Perspective

Reduced electricity demand through the implementation of an energy efficiency policy is a central pillar of the Malaysian government’s energy strategy. Energy efficiency first emerged as part of Malaysia’s energy policy agenda in 1979 but only came into force during the 2000s. Initially, it was seen from global fears about the shortage of fossil fuels, then as a way of combating climate change. This paper offers a comprehensive review of Malaysia’s energy policies with a focus on adopting policies to improve energy efficiency. Starting with Malaysia’s preliminary policy in response to the OPEC-driven global oil crisis in 1973, the paper discusses how policymakers are considering energy efficiency from Malaysia’s sustainable development perspective and what relevant government efforts have been made to improve it. The review evaluates the progress that has been made over the past 25 years to address energy efficiency in the economy and highlights the achievements and remaining difficulties. Findings show that the level of energy efficiency while having shown improvement during 1990-2015, was lower than expected. In terms of electricity intensity of GDP, Malaysia has a relatively large position among the ASEAN countries and the world’s largest electricity consumers. Researchers, scientists, and practitioners will benefit from the extensive review material of this study, which will help them better understand energy efficiency and the sustainability strategy implemented in Malaysia to date.