Geopolitical tensions in West Asia highlight the need for Malaysia to bolster energy security and accelerate its transition, says Deputy Prime Minister Fadillah Yusof
KUALA LUMPUR: Recent geopolitical tensions in West Asia have emphasised the urgency for Malaysia to strengthen its energy security and accelerate its transition efforts.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the volatility of global energy markets proves that energy security is deeply structural.
He stressed the need to balance transitioning from fossil fuels while safeguarding energy security.
“Short-term gains from high oil prices must not distract us from long-term vulnerabilities because true security is not about what we earn today but what we can sustain tomorrow,” he said.
Fadillah delivered this keynote address at the Malaysia Energy, Water and Climate Change Summit 2026.
The summit’s theme was “Implementing Infrastructure, Renewable Energy, and Water Reform for a Net Zero Malaysia”.
He noted that similar pressures are unfolding across ASEAN. “History has shown that during a crisis, the instinct is often to retreat, delay transition and extend reliance on fossil fuels. But we must resist that instinct,” he said.
Fadillah, who is also Minister of Energy Transition and Water Transformation, described the energy transition as a strategic necessity.
“Every megawatt of renewable energy we generate locally is a step away from vulnerability, and a step toward sovereignty,” he stated.
He said Malaysia has a clear policy direction through the National Energy Transition Roadmap (NETR).
Fadillah stressed that implementation must now translate into action, starting with grid expansion.
“Renewable energy is no longer the constraint. Transmission is. Without grid expansion, our ambitions will remain stranded,” he explained.
On tariff reform, he argued that subsidies burden the future. Fadillah said a sustainable system must reflect real costs so that investment can follow.
He also highlighted critical water issues, noting Malaysia loses over 30% of treated water.
“Tariffs remain disconnected from operational realities. We cannot expect sustainability from a system that cannot sustain itself,” he added.
Technology like smart metering and AI leak detection offers solutions, but he warned technology alone is not enough.
“If energy powers our growth, water determines whether that growth can endure,” Fadillah said.
He concluded that federal commitment must be matched by effective implementation at the state level. “Transformation does not happen in silos. It happens in unity,” he said.
