Targets

2018

2040

a. Increase in urban public transport modal share

20%

50%

b. Increase electric vehicle (EV) penetration

<1%

38%

c. Alternative lower carbon fuels in heavy transport

B5 blend

B30 blend

d. Usage of LNG as alternative fuels in marine transport

0%

25%

e. Increase in percentage of industrial and commercial energy efficiency savings

<1%

11%

f. Increase in percentage of residential energy efficiency savings

<1%

10%

g. Increase in total installed capacity of renewable energy (RE)

7,597MW

18,431MW

h. Reduction of coal in installed capacity

31.4%

18.6%

i. Increase in percentage of RE in total primary energy supply

7.2%

17%

1. Energy

1. Long-term pipeline of large scale solar (LSS) projects to ensure domestic energy self-sufficiency and environmental sustainability.
2. Incentivise dual-use-agri-voltaic solar farms to increase land productivity and environmental sustainability.
3. Consider feasibility of the usage of floating solar including its synergy with hydropower.
4. Extend net energy metering (NEM) to continue spur solar development prior to transitioning to an alternative form of compensation scheme.
5. Increase capital access for distributed solar with rooftop solar aggregation and unlock attractiveness of distributed solar with P2P and virtual Power Purchase Agreements (VPPAs).
6. Conduct studies to identify potential alternative energy supply such as waste-to-energy, 3rd generation bioenergy, solar thermal, ocean thermal, geothermal and wind energy in specific targeted regions.
7. Match private sector investment with government grants especially in early proof-of-concepts as well as deployment and scale-up for high potential alternative energy supply sources.
8. Identify bio-based resources strategy for energy and non-energy uses to utilise the advantage of having ample amount of bio-based feedstock.
9. Improve the use of bioenergy for power generation (biomass or biogas plants) which may result in an increase of waste-to-energy projects, particularly to support cost-effective rural electrification.
10. Improve the use of biofuels penetration in existing transport and industry uses.
11. Invest in grid infrastructure upgrade and energy storage to accommodate greater variable RE penetration, including the digitalisation and modernisation of the power system (i.e. smart grids).
12. Promote the implementation of green VPPAs to increase offtake choice to attract ESG investments (e.g. by RE100 companies).
13. Undertake market reform studies in connection with electricity market liberalisation and a conducive third party grid access scheme.
14. Invest into the timely expansion of cost-effective energy import infrastructure to improve security of supply.

2. Hydrogen

1. Establish a clear framework and strategy to encourage the development of a hydrogen economy.
2. Develop a domestic hydrogen ecosystem supported by research and development (R&D), technology deployment and commercialisation capabilities across targeted areas along the hydrogen value chain of production, distribution and end-use application
3. Develop hydrogen specific regulation which applies to production, transportation and end-use applications. 

3. Carbon Footprint Reduction

1. Encourage, and gradually mandate private sector carbon footprint accounting and reporting through internationally recognised standards.
2. Permit voluntarily certify carbon footprint position through endorsed certification entites.
3. Ensuring the natural gas infrastructure build out (for both physical and virtual pipeline systems) is strategic, timely and cost-effective.

4. Energy Vehicle

1. Support the promotion of energy vehicles (EV) with investments, financing and capability building to enhance local EV manufacturing and supply chain ecosystem.
2. Undertake focused planning and support with initial public-private funding to support charging infrastructure build out and other relevant physical enablers to achieve the desired EV penetration.
3. Introduce regulations to assist in the development and adoption of EV.

5. Oil and Gas

1. Continue the development of petrochemical hubs in Sabah (Sipitang Oil and Gas Industrial Park) and Sarawak (Bintulu Petrochemical Hub) to improve and strengthened Malaysia's natural gas advantage.
2. Enhance the positioning of existing Peninsular petrochemical hubs such as Kerteh and Pengerang to create spillover effects to local supply chains and communities to boost socioeconomic development.
3. Ensuring the natural gas infrastructure build out (for both physical and virtual pipeline systems) is strategic, timely and cost-effective.