Out of gas weighing our energy options


With TNB’s recent price hike, it is time to review Malaysia’s energy situation, focusing on electricity supply. The economics suggest that Peninsular Malaysia will go for coal in the long term, unless drastic measures are taken soon.

As fossil fuel resources become increasingly expensive, energy-exporting countries have to realise that in order to meet domestic energy demands, they will have to become net energy importers. Malaysia, while a major global energy exporter, may have already crossed that line. We have become a net importer of petroleum products since 2011, and we are also importing the vast majority of our coal. The government forecasts Malaysia’s energy demands to triple by 2050 as part of, or a result of, its planned growth trajectory, making energy subsidies and below-market energy rates increasingly difficult to sustain.

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