Malaysia is positioning itself at the forefront of Southeast Asia’s energy transition with its National Energy Transition Roadmap (NETR). The visionary blueprint aims to reshape the nation’s energy landscape, targeting 31% renewable energy (RE) by 2025 and scaling up to 70% by 2050. By prioritising renewable energy development, grid modernisation and innovative long-term strategies, the nation is proactively reducing its reliance on fossil fuels while tackling the complex challenges of building a sustainable energy ecosystem.

Yet, this transition transcends technology – it is fundamentally human with profound implications for talent and communities. It reshapes livelihoods, communities, and consumer behavior, raising questions about ways to ensure equity and inclusivity in the process. From workforce transformation to community impacts and evolving consumer habits, Malaysia’s energy transition is as much a societal evolution as it is an environmental effort.

Empowering the Energy Talent Pool

Mainly those migrating from fossil fuel industries to acquire relevant skills for renewable energy jobs

One of the most significant challenges of the energy transition lies in workforce transformation. As fossil fuel industries decline, thousands of workers across Southeast Asia, including Malaysia, must be reskilled to adapt to clean energy roles such as solar panel installers and technicians, energy analysts, energy auditors and specialised smart grid engineers. Without strategic interventions, these workers face uncertain futures, risking widespread displacement.

In response to this, numerous initiatives towards bolstering the nation’s current workforce have been launched by both the government and private industry, signifying Malaysia’s serious intentions in addressing this challenge. Government programs, certifications and industry partnerships are helping talents, mainly those migrating from fossil fuel industries to acquire relevant skills for renewable energy jobs.

Malaysia’s policy guidebooks such as the National Energy Policy (NEP) and the New Industrial Master Plan 2030 (NIMP), puts workforce readiness at the forefront of the industry’s agenda. Supporting this mission are industry’s effort such as Tenaga Nasional Berhad’s (TNB) Protégé-Ready to Work initiative and Petronas’ FutureTech Accelerator Program, with the HRDF Green Jobs Fund providing the much needed financial assistance for vocational training precisely designed for migrating workers.

Higher education institutions like Universiti Tenaga Nasional (UNITEN) are also playing a vital role, developing specialised certification courses in renewable energy. This collaborative effort between academia and industry ensure that Malaysia’s workforce remains competitive, ready to meet the demands of its growing clean energy sector.

Socio-economic Transformation through the Solar Industry

The solar industry exemplifies the transformative potential of renewable energy in driving socio-economic change. With a workforce of 54,300 in 2019, Malaysia leads ASEAN in solar photovoltaics (PV) employment – a number that is expected to grow with the Fifth Large Scale Solar (LSS5) programme set to commence in 2025. This initiative, led by the Energy Commission (EC), will require nearly 60,000 skilled workers, creating significant opportunities for capable local talents. Adding to the demand is a robust network of operational Large-Scale Solar (LSS) PV plants, including the TNB Bukit Selambau Solar (50MWAC & 30MWAC), TNB Sepang Solar and Leader Solar Energy in Kuala Muda.

Solar PV manufacturing also offers immense potential, with each gigawatt of production capacity creating 1,300 manufacturing jobs, according to the International Energy Agency (IEA). Malaysia’s strategic location in the “sun belt,” coupled with its skilled workforce in electronics and semiconductors, robust infrastructure and reliable power supply has attracted six of the world’s largest solar PV companies.

Having a robust industry that drives key foreign investments are showing benefits beyond economic growth. First Solar Malaysia, based in Kulim Hi-Tech Park, have successfully employed around 4,000 technical professionals, showcasing how renewable energy projects can enhance the capabilities of Malaysian talents, spur economic growth and bolster Malaysia’s leadership in clean energy innovation.

Initiatives in Driving Societal Change

The success of Malaysia’s energy transition hinges on its ability to address the broader societal impacts, ensuring accessibility and inclusivity. Naturally, challenges such as limited awareness and cost barriers exist.

Initiatives such as the Green Electricity Tariff (GET) program, spearheaded by leading utility, TNB, empowers eco-friendly consumers and businesses with ESG priorities to opt for low carbon electricity supply with convenience. Skipping the hurdle of installing their own, the programme allows consumers to purchase renewable energy from TNB’s readily available sources such as those generated by the Large-Scale Solar (LSS) Programme, hydropower stations and any other renewable plants.

Meanwhile, the Net Energy Metering (NEM) scheme introduced by the government and managed by the Sustainable Energy Development Authority (SEDA) allows property owners to install solar panels and generate for their consumption while selling excess energy back to the grid. Additionally, SEDA’s Feed-in-Tariff (FiT) program authorises electricity produced from non-conventional renewable energy resources (biogas, biomass and small hydropower) to be sold to power utilities at a fixed price for a specific duration. Such programmes allow a dual benefit of increasing access to clean energy across socioeconomic groups, while providing consumers earnings for any excess energy without it going to waste.

Financial support and incentives play critical roles in bridging cost barriers. For example, the Low Carbon Transition Facility by Bank Negara Malaysia which aids SMEs in adopting low carbon practices and United Overseas Bank’s (UOB) U-Solar Program which offers low-interest loans for solar panel installations, encourages widespread adoption across socioeconomic groups. Other incentives include SolaRIS, an initiative by the government that provides rebates to residential customers under the Net Energy Metering (NEM) application, as well as Save 4.0 by SEDA providing rebates in purchasing energy-efficient appliances.

Education and awareness campaigns are equally essential and have shown significant developments in Malaysia. The Malaysia Energy Literacy Program (MELP) led by the Ministry of Energy Transition and Water Transformation (PETRA) in collaboration with EC, TNB as well as other energy players, also establish initiatives, which includes SEDA’s YEEPE Interactive Studio and the Youth Energy Squad (Y.E.S.) by Universiti Sains Malaysia, that are cultivating energy-conscious behaviours among Malaysians of all ages. By engaging schools, universities, and communities, these programs empower individuals to take ownership of their energy consumption and contribute to the nation’s renewable energy goals.

A People-Centred Energy Future

The energy transition is not only about achieving targets; it is about creating an inclusive ecosystem that leaves no one behind. Programmes supporting reskilling, financial accessibility and public awareness are critical to ensuring that every Malaysian has the opportunity to participate in and benefit from this transformation.

Ultimately, the human factor is at the heart of Malaysia’s energy transition. While technological and infrastructure advancements lay the groundwork, they are just part of the equation, it is the people – workers, communities and consumers – who bring the vision to life. By focusing on inclusivity, equity, and empowerment, Malaysia can ensure that its energy transition is not only a technological success but a societal one – ushering in a future where clean energy powers both the economy and the well-being of its people.