
MALAYSIA © IRENA 2025 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printedand/or stored, provided that appropriate acknowledgement is given of IRENA as the source and copyrightholder. Material in this publication that is attributed to third parties may be subject to separate terms of useand restrictions, and appropriate permissions from these third parties may need to be secured before any useof such material. ISBN:978-92-9260-700-5 Citation:IRENA (2025),Socio-economic impacts of the energy transition: Malaysia,International RenewableEnergy Agency, Abu Dhabi. Available for download: www.irena.org/publications For further information or to provide feedback: publications@irena.org About IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supportscountries in their transition to a sustainable energy future and serves as the principal platform for internationalco-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledgeon renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewableenergy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit ofsustainable development, energy access, energy security and low-carbon economic growth and prosperity.www.irena.org Acknowledgements This report was authored by Bishal Parajuli, Yuan Sun, Gondia Sokhna Seck and Assiya Hasni (IRENA), andNora Yusma binti Mohamed Yusoff (Malaysia Universiti Tenaga Nasional-UNITEN). The modelling results wereprovided by Alistair Smith, Ha Bui and Jon Stenning (Cambridge Econometrics). The report benefited from the review and inputs of IRENA colleagues: Adam Adiwinata, Chun Sheng Goh,Ricardo Gorini, Imen Guerboudj, Hannah Sofia Guinto, Maisarah Abdul Kadir, Karanpreet Kaur, Michael Rennerand Sibghat Ullah, as well as from IRENA Technical Reviewer, Paul Komor. The report also benefited from thevaluable contributions and review of external experts Esther Lew (Malaysia Ministry of Energy Transition andWater Transformation), Koh Keng Sen (Malaysia Sustainable Energy Development Authority, SEDA) and MohdAzlan bin Uda Kanardin (Tenaga Nasional Berhad). Editorial production was managed by Francis Field with the support of Stephanie Clarke. The report was copy-edited by Steven Kennedy, with design by Myrto Petrou. IRENA would like to thank the Government of Denmark for supporting the work that formed the basis for thisreport. Disclaimer This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliability ofthe material in this publication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides awarranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publicationor material herein. The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies orcertain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature thatare not mentioned. The designations employed and the presentation of material herein do not imply the expression of any opinion on the partof IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiersor boundaries. CONTENTS 2THE ENERGY TRANSITION IN THE CONTEXT OF OVERALLSOCIO-ECONOMIC DEVELOPMENT........................................................................... 15 2.1Synergies between the energy sector,and economic and industrial development........152.2Overarching national energy policies and strategic plans..................................................182.3Challenges in Malaysia’s energy landscape...........................................................................20 3THE ENERGY TRANSITION AND ITS SOCIO-ECONOMIC IMPACTS.............................. 24 3.1IRENA’s Malaysia energy transition outlook..........................................................................243.2Socio-economic impacts of the energy transition................................................................26 FIGURES Figure S1Changes in gross value added between the 1.5˚C Scenario and the PES,by sector, in USD billions (left) and in % (right), 2030-2050.......................................... 8Figure S2Changes in gross value added in industrial sectors, 2030-2050 (in USD billions)...... 8Figure S3Overview of energy sector jobs in Malaysia under the 1.5°C Scenario and PES,by sector, 2021-2050 (in millions).................................................................................... 9Figure S4Renewable energy jobs in Malaysia under the PES and 1.5°C Scenario,2021-20