FEM 2026: Malaysia Must Balance Energy Trilemma to Ensure Sustainable Transition, Says Fadillah
KUALA LUMPUR: Malaysia must maintain a careful balance between energy security, affordability and environmental sustainability to ensure a fair and resilient energy transition, said Deputy Prime Minister and Minister of Energy Transition and Water Transformation Fadillah Yusof.
He said the three pillars, commonly referred to as the “energy trilemma”, form the foundation of the country’s energy policy as Malaysia accelerates its shift towards renewable energy and green technologies.
“Energy security ensures stable and sufficient supply, affordability guarantees fairness for households and industries, while sustainability protects the environment for future generations. Balancing all three is a major challenge,” he said.
Fadillah was speaking at the Managing Sustainability and Energy Transition session held in conjunction with the Forum Ekonomi Malaysia (FEM) 2026 here on Thursday.
He said the government is prioritising the development of hydrogen energy, Carbon Capture, Utilisation and Storage (CCUS), and regional power interconnections to support Malaysia’s low-carbon transition.
According to him, recent energy tariff adjustments have been well received, in line with the country’s target of achieving 15 per cent renewable energy usage.
He also described the enforcement of the Energy Efficiency and Conservation Act from January 1, 2025 as a major milestone after more than a decade of preparation.
On emerging energy sectors, Fadillah highlighted the floating solar project in Kenyir as a strategic initiative to support green hydrogen production.
He said PETROS and PETRONAS will work closely to drive hydrogen industry development in a structured and mutually beneficial manner.
Several new hydrogen projects are also planned in southern Malaysia, including Johor, backed by existing policies and strategies.
Fadillah added that regional renewable energy interconnections face challenges related to transmission charges, technical standards and regulatory alignment.
“Basic models are already in place. Our focus now is to strengthen existing systems and harmonise technical and legal frameworks. The Laos-Thailand-Malaysia-Singapore cooperation has proven it is feasible,” he said.
He stressed that balancing the energy trilemma is essential to ensure Malaysians continue to enjoy reliable, affordable and environmentally friendly energy supplies in the long term.
-wilayah.com.my
