EY research: Malaysian businesses expect electricity demand to surge by 2028 as electrification accelerates

• 91% of businesses in Malaysia expect electricity consumption to increase by 2028 as renewables, digitalization and AI scale.
• Energy strategy emerges as a growth and brand imperative, reinforced by Budget 2026’s focus on the National Energy Transition Roadmap.
• Digital and AI-enabled energy solutions are in demand, with 80% of businesses seeking smarter tools for energy management.

Kuala Lumpur, 8 January 2026 – Malaysian businesses are at the forefront of a major energy transformation, as new research reveals surging electricity demand, ambitious sustainability targets and growing expectations for smarter, greener energy solutions. According to EY’s Navigating the Energy Transition research program, 91% of Malaysian businesses expect electricity use to rise sharply in the next three years, while 75% anticipate more complex energy needs driven by:

• Rising and unstable energy costs (68%)
• Availability and reliability concerns (80%)
• Decarbonization imperatives (82%)

This shift is fueled by electrification, adoption of electric vehicles (EVs) and digital technologies, such as automation and artificial intelligence (AI).

The findings come as Malaysia accelerates its National Energy Transition Roadmap (NETR), which aims for 70% renewable energy by 2050¹. In 2026, initiatives such as the Solar Accelerated Transition Action Programme (Solar ATAP) take effect, underscoring the government’s commitment to making energy transition one of Malaysia’s top national priorities, aligning economic growth with sustainability and resilience.

The survey finds that businesses — which are responsible for more than 75% of the country’s electricity demand — are ready to invest in clean energy solutions:

• Over 83% of companies plan to increase investment in electrifying operations, lowering emissions and reducing energy costs.
• 72% are considering on-site renewable installations such as rooftop solar panels.
• More than half (54%) are exploring opportunities to sell surplus energy back to the grid.

Energy ambitions also vary across industries:

• Over 90% of manufacturing and IT businesses expect double-digit growth in electricity use.
• More than a quarter of businesses, topped by retail and transportation companies, rank sustainability as their top energy goal.
• Construction firms are emerging as leaders in on-site generation adoption.

These trends underscore the need for tailored solutions that address sector-specific challenges and opportunities.

As businesses electrify operations and invest in renewables, Malaysians can expect cleaner air, expanded EV infrastructure and more resilient energy systems. However, rising energy costs and infrastructure gaps could affect affordability and reliability if not managed proactively.

“Energy is now a competitive asset. Businesses that embrace smarter, greener solutions will unlock growth and resilience. Collaboration between companies, energy providers and policymakers is critical to Malaysia’s energy future,” said Mark Bennett, EY Asia-Pacific Energy & Resources Customer Experience Transformation Leader; and Partner at Ernst & Young Consulting Sdn. Bhd.

With electricity demand expected to grow by between 60% and 100% by 2050², Malaysia’s energy ecosystem is at a turning point. Companies and energy providers that embrace innovation, digital engagement and ecosystem collaboration will not only help businesses thrive but also build a cleaner, more resilient Malaysia for all.

-ENDS-

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