SUBANG JAYA: Malaysia expects electricity demand to continue rising as hotter weather increases the need for air-conditioning and cooling, says Economy Minister Akmal Nasrullah Mohd Nasir.
He said this in response to a CIMB Securities warning on Monday (Sept 7) that El Niño could put greater pressure on the country’s power system next year.
Akmal said electricity demand was already on an upward trend, driven by population growth and increasingly energy-intensive users such as data centres.
“In terms of the projection for demand on energy, definitely we see a pattern of increase,” he told reporters after officiating the Energy Regulatory Insights 2026 here on Tuesday (Sept 8).
He said hotter weather would increase the need for cooling systems and air-conditioning.
“Definitely the weather or the climate that tends to increase energy demand,” he said.
His remarks came after CIMB Securities said that hotter and drier conditions from El Niño could put greater pressure on Malaysia’s electricity and water systems into 2027.
The research house said El Niño was expected to persist into early 2027 and peak between March and May, potentially lifting electricity demand for cooling while worsening water shortages.
CIMB said Malaysia was particularly exposed as electricity demand was already rising, while about 37% of treated water was lost through non-revenue water.
Malaysia’s peak electricity demand is projected to rise to 33.5GW by 2035 from 21.3GW in 2026, while data centres could account for 31% of Peninsular Malaysia’s electricity demand by then, according to CIMB.
Akmal said Malaysia would therefore need to focus not only on adding electricity supply, but also on managing consumption through greater energy efficiency and conservation.
“Looking ahead, definitely managing demand for energy will become as crucial as managing the energy supply,” he said.
He added that the power system, including the grid and wider infrastructure, would have to be continuously upgraded over the next five to 10 years to remain affordable, safe and sustainable.
