In brief
Deputy Prime Minister Fadillah Yusof said Malaysia must act now to build a flexible power system capable of handling rising demand and new industries such as data centres, AI and semiconductor manufacturing. He warned that geopolitical tensions, fuel price swings and climate‑related risks could tighten supply, and highlighted the need for investments in renewable energy and new infrastructure. The government’s goal: to supply the 33.5 GW peak demand expected by 2035 without compromising affordability or climate commitments.
In a press briefing on 4 November 2026 in Kuala Lumpur, Malaysia’s Deputy Prime Minister Fadillah Yusof said the country needs a forward‑looking plan to keep its electricity system from choking under future demand. He urged the government to take timely decisions, coordinate planning and build infrastructure that can handle changing power flows.
Yusof said flexible power flows across Peninsular Malaysia are essential to help meet changing demand, accommodate new power generation and support the integration of renewable energy. He added the electricity system must keep pace as the economy digitalises and as data centres, artificial intelligence and semiconductor manufacturing grow.
The Deputy Prime Minister warned that “geopolitical tensions, fuel price volatility, supply‑chain disruptions and climate‑related risks” can affect both the availability and cost of energy. He said these challenges “demand careful judgement as we work to maintain security of supply, protect affordability and advance our climate commitments.”
In line with Yusof’s comments, the New Straits Times reported that peak electricity demand on Peninsular Malaysia is projected to rise to 33.5 gigawatts by 2035, up from 21.3 gigawatts this year.
Fadillah also noted that high‑value industries present both opportunities and challenges. The investments he hopes to bring can create quality employment and strengthen local enterprises, but they also place greater demands on the electricity system and supporting infrastructure.
Malaysia’s plan is to ensure that every investment and technological advancement ultimately translates into tangible benefits for the people and that the power system’s “today’s infrastructure must serve the needs of tomorrow.”
