As Malaysia accelerates its transition towards a low-carbon economy, the private sector is stepping up as a key driver of progress. This commitment took centre stage at the 3rd Annual National Energy Efficiency Conference (NEEC), organised by the Malaysian Green Technology and Climate Change Corporation (MGTC) and Business Sweden, in collaboration with industry partners ABB, Atlas Copco, Daikin, Schaeffler and SKF.
The event, held at the Kuala Lumpur Convention Centre, convened policymakers, industry leaders and technology experts to explore collaborative strategies to enhance energy efficiency across Malaysia’s industrial and commercial sectors. The conference builds on Budget 2026’s renewed push for private sector participation in achieving the National Energy Transition Roadmap (NETR), underscoring the government’s call for industry-driven innovation in sustainable growth.
The conference also touched on developments within the semiconductor industry, energy efficiency in the age of artificial intelligence (AI) and halal green industries; key areas driving the nation’s competitiveness and commitment to sustainable industrial growth.
The event also marked the exchange of Memorandum of Understandings (MoUs) with SKF Malaysia, formalising its entry as the latest member of the NEEC network. Together, these partnerships reflect an expanding ecosystem dedicated to advancing Malaysia’s energy transition through shared expertise and cross-industry collaboration.
A coalition translating policy into Industrial change
Recent developments show that Malaysia is already delivering measurable progress in energy efficiency. The Malaysian government has achieved cumulative savings of 39,382 GWh, which is valued at RM10.5 billion. In the first half of 2024 alone, the country delivered 5.82 per cent electricity savings, which is equivalent to RM2.21 billion.
“Energy efficiency is one of the most practical and impactful tools we have for achieving net-zero ambitions. Our collective goal is to help industries move from compliance to competitiveness, ensuring that energy efficiency is seen as a strategic advantage that drives long-term growth,” said Khalid Shaikh, General Manager of Atlas Copco (Malaysia) Sdn Bhd.
These savings are achieved from the programmes such as minimum performance standards, energy audits and building energy index labelling. In addition to that, the recent Budget 2026 has reinforced these commitments under NETR by introducing a RM150 million Energy Transition Fund. This fund is a major solar project which includes the Large-Scale Solar (LSS 6) programme (nearly 2GW capacity) and strong targets such as 70 per cent renewable energy capacity by 2050.
Reflecting this shift, Beckers Industrial Coatings, Nextgreen Global Berhad, Sandvik Equipment, PureCircle and Kawan Food Manufacturing were honoured as Energy Efficiency Champions, recognising their leadership in integrating sustainable technologies, optimising production processes and embedding efficiency into their business models.
“As industries digitise, predictive maintenance, condition monitoring and energy monitoring are becoming key enablers of both compliance and competitiveness. These technologies can both help cut waste and emissions and ensure that operations are future-ready,” noted Kelvin Chong, Managing Director of Schaeffler Malaysia.
These initiatives demonstrate how policy, technology and industrial leadership are forming a coalition that both advances Malaysia’s decarbonisation goals and redefines competitiveness in a low-carbon economy.
Technology at the heart of industrial transformation
The NEEC 2025 discussions made clear that Malaysia’s next wave of energy efficiency will be driven by technology integration, not as an isolated innovation effort, but as a systemic shift in how industries operate. Across sectors, the convergence of automation, AI and intelligent cooling systems is redefining operational standards, enabling companies to achieve both emissions reduction and productivity gains simultaneously.
At the core of this transformation is the recognition that energy efficiency is no longer a peripheral compliance measure, it is now a competitive imperative. For industries, this means embedding efficiency directly into processes, machinery and decision-making frameworks, from motion technology to HVAC optimisation.
“At ABB, we believe three key forces will shape Malaysia’s sustainable energy future, and energy efficiency is one of them. To turn ambition into action, collaboration is essential. No single organisation can tackle this challenge alone. By bringing together our strengths in electrification, automation, and digitalisation, we can build an ecosystem that drives sustainable industrial transformation, at scale and with lasting impact,” said R. Narayanan, Group Senior Vice President & Head of Motion Business, Asia, ABB.
In manufacturing environments, digitalised motion and automation systems are increasingly being used to identify inefficiencies in real time, streamline energy use and extend equipment lifespan, creating compounding value for both sustainability and cost management.
Meanwhile, the building and industrial cooling segments are seeing parallel advances. “Smart cooling systems play a critical role in reducing Malaysia’s energy footprint. By combining advanced HVAC technologies with intelligent controls, we can help buildings and industries achieve measurable energy savings,” noted Desmond Tay Yang Jiun, Senior Manager (HOD), VRV & Project Sales at Daikin Malaysia.
For SKF Malaysia, the principles of circular economy and energy stewardship converge through its commitment to the NEEC. “Through this collaboration, we aim to share best practices, drive innovation and deliver intelligent and clean solutions that accelerate sustainable industrial transformation. With every rotation we optimise, and every collaboration we nurture, we are fulfilling our commitment – Less Friction. More Progress,” said Naqeeb bin Yusof, Head of Service & Engineering at SKF Malaysia.
Together, these advancements reflect a broader shift underway in Malaysia’s industrial landscape where digitalisation, data and cross-sector collaboration are transforming energy efficiency into a foundation for long-term competitiveness and net-zero growth.
Accelerating Malaysia’s energy transition through collaboration
The 3rd National Energy Efficiency Conference (NEEC) 2025 underscored a decisive shift in Malaysia’s approach to decarbonisation, from policy formulation to coordinated, on-the-ground execution. With the Energy Efficiency and Conservation Act (EECA) now in motion and the RM150 million Energy Transition Fund reinforcing Budget 2026, the conversation has moved beyond ambition to implementation.
“Malaysia’s journey towards a low-carbon economy is a shared endeavour, and energy efficiency remains at the heart of that transformation. Through platforms like the National Energy Efficiency Conference, we see how strong public–private collaboration can translate ambition into measurable impact. Sweden is proud to support Malaysia in accelerating its green transition, fostering innovation, and building sustainable competitiveness across industries,” said Ludvig Hermansson, Trade Commissioner, Business Sweden in Malaysia.
The conference, themed “Energy Efficiency First: Regional Action for Climate Leadership,” served as a platform for translating national frameworks such as the National Energy Transition Roadmap (NETR) into practical action. Its sessions brought together public institutions and private innovators to identify the mechanisms, technologies and partnerships needed to close the gap between regulation and real-world results.
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