Malaysia’s transition away from coal has entered a decisive phase. The government has committed to build no new coal-fired power plants, halve coal power by 2035 and completely transition away from coal by 2044. The challenge now is to deliver an affordable transition that strengthens energy security, creates jobs and stimulates economic growth. This report focuses on practical pathways to manage coal phase-down while building a more flexible and resilient power system.

Malaysia’s policy framework and goal to reach 70% renewables by 2050 provide a strong basis for the country to capitalize on its natural assets and develop cheaper, cleaner and more sustainable electricity generation, while reducing exposure to fuel import costs and volatility. Challenges include stabilizing a renewables-led system as coal exits, initially with gas until balancing resources come online through the ASEAN Power Grid and potentially nuclear. This report outlines nine strategies to meet these challenges – including a National Coal Site Repurposing Framework, aimed at repowering retired coal sites with solar and battery storage.

These insights reflect the outcomes of an eight-month structured dialogue – convened by the World Economic Forum and Malaysia’s Ministry of Energy Transition and Water Transformation, with support from KPMG – which brought together public and private sector perspectives from across the energy, infrastructure, technology and finance ecosystems.