Malaysia risks total dependence on imported gas if sustainable energy policies not enacted: Economy Minister

Malaysia could be entirely dependent on imported gas by 2050 if the government does not make concerted efforts to accelerate the transition to more sustainable energy, according to Economy Minister Rafizi Ramli.

Rafizi said that as of 2023, Malaysia imported as much as 25% of its gas to generate electricity.

"This situation will continue and this year it is expected that we will import 30% gas [of our gas] for electricity,” he was quoted by local media.

The minister said that if policy changes are not made, Malaysia could become fully dependent on imported gas by 2050.

"We have seen how countries that rely on gas imports were impacted when geopolitical tensions like those of Russian and Ukraine war erupted.

"We have to change the energy policy so by 2050 we will not be dependent on other countries to generate electricity," he was quoted by the Business Times

However, that might be easier said than done, admitted Rafizi.

"How do we get the public and stakeholders onboard? We have to tell the truth and the truth is painful," he told the National Institute of Public Administration (Intan) Minister’s Conversation 2024 on Friday.

Rafizi explained that the public sector that manages the government's cash flow understands the country's current state on importing gas but, to initiate change, the responsibility falls on lawmakers.

The minister added that Malaysia seemed to be lagging behind its neighbours in terms of sustainable energy, despite the opportunities that it has given its strategic geopolitical location and one of the best power systems in the region.

"However, we are behind Indonesia because they seemed like they had a plan and were moving forward with sustainability. We have fallen behind because we do not want to take measures that are more challenging,” he said.

The Malaysian government has launched the National Energy Transition Roadmap (NETR) and is targeting net zero emissions by 2050 but more still needs to be done, said Rafizi.

"The external world will punish us if we do not do energy transition. We are part of the world and internally, we cannot afford the behaviour that we have now" he added.

Against this backdrop, Rafizi lamented Malaysia’s dwindling oil production.

He said the nation today produces less than 400,000 barrels per day of oil, compared to an historic high of some 700,00 bpd about 20 years ago.

"We are discovering less oil in the country. The government receives annual dividend from [national energy company] Petronas and [has been] dependent on it for the past 20 years.

"For every ringgit we take from the dividend, it reduces Petronas' ability to make new oil discoveries in other countries," said Rafizi.