Executive Summary – Malaysia Energy and Renewables Report

Malaysia Land, Topography, and Climate
Malaysia is a country located in Southeast Asia between 0o 51’ N – 7o 33’ N and 98o 01’ E – 119o 30’ E. Total land area of Malaysia is around 332.280 square kilometers. The territory of Malaysia is divided into two parts namely Peninsular region or West Malaysia. The topography of Peninsular Malaysia ranges from coastal areas to mountainous regions. The central mountainous spine known as the Titiwangsa Range at 2183 above sea level. It divides the Peninsula between its east and west coasts. Pahang River is the longest river in Peninsular Malaysia and the third longest in Malaysia.
Malaysia is tropical country with rainfall average 2.540 mm/year with an average temperature around 28oC. The rainy season occurs from November to March. The dry season occurs from June to September. Malaysia experienced two monsoons, southwest monsoons from late May to September and the Northeast monsoon from November to March, originating from China and the Pacific Ocean. The southwest monsoon comes from the deserts of Australia. March and October between the monsoons.

Malaysia Peoples and Economic
Total population in Malaysia 2016 reach 31.7 million peoples with population growth 1.4% per year and projected will be reach 41 million peoples in 2040. 76% from population in Malaysia live in urban area, and it is predicted continue to increase. In other hand, 69% from total population in Malaysia is productive age.
Malaysia has stable economic growth since 2010 at around 4.3-4.6% per year. In 2016, its economic growth reaches 4.3%. This growth is driven by industrial sector which contributes about 20% of gross domestic product in Malaysia. There are 2 industrial sub-sectors to supporting the Malaysian economy. The first one is Chemical and Chemical Product industry, and the second one is electrical and electronic and optical product industries. The second industry that supporting the Malaysia’s economy is the electrical and electronic equipment sub-sector. Therefore, the industrial sector in Malaysia contribute 139 million tonnes of CO2 or 53% from total CO2 produced by Malaysia. According to the World Bank, Malaysia’s economic outlook suggests it will continue to rise. In general, fundamentals of economic in Malaysia is relatively stable in the last 3 years. Domestic demand is expected to continue to boost economic growth supported by stable income and labor markets where unemployment fell 0.1% from a year ago. Malaysia has stable economic growth since 2010 at around 4.3-4.6% per year. In 2016 Malaysia’s economic growth reaches 4.3%.

Energy Supply and Demand
Malaysia’s energy consumption in 2017 reached 57 million tonnes of oil of equivalent and is predicted to continue to increase. In 2040, energy consumption in Malaysia is predicted to reach 93 million tonnes of oil of equivalent. Share of energy consumption in Malaysia is dominated by natural gas by 64% and on the other hand oil use will decline in 2040
The biggest energy consumption in Malaysia is the transportation sector with consumption around 20.7 Mtoe or 36%, followed by the industrial sector with 19 Mtoe or 34% of total energy consumption. Energy consumption in the transportation sector is predicted to reach 34.7 Mtoe and the industrial sector reaches 29.4 Mtoe in 2040.
In other side, in the last 10-year annual growth of energy supply in Malaysia reaches 6% per year. The largest energy supply is supplied from natural gas, crude oil, and coal resources. In energy import, Malaysia also import some petroleum products from other country such as Singapore. Gasoline is the major import, making up around 45% from total petroleum product import.

Renewable Energy in Malaysia
Malaysia has a large renewable energy source. The Malaysian government is targeting the use of 50% of energy supplied from renewable energy. In the short term, the Malaysian government is targeting the use of 11% electricity install capacity by 2020. The Malaysian government is implementing a feed in tariff policy to encourage the growth of renewable energy in Malaysia.

At present, hydropower is the main energy source in Malaysia. The total energy potential of hydropower is estimated to reach 29 GW. Currently, install capacity hydropower in Malaysia reaches 6 GW. Besides hydro power, Malaysia also has a renewable energy source from solar power. Total install capacity of solar energy in Malaysia reached 339 MW in 2016. Malaysia has many solar PV companies. Solar PV is exported to Europe, the US and Asia. On the one hand, Malaysia also has renewable energy from bioenergy. Malaysia is the largest palm oil producer in the world. Around 58 million tons of Palm Oil Mill effluent (POME) is produced in Malaysia annually, which potential to produce 15 billion m3 of biogas can be produced each year. To anticipate the demand of energy, the Malaysian government made several policies including the 5 star rated appliance program, promoting of efficient lighting, and energy efficiency in transport sector.