Electricity: The Backbone of the Company – Malaysia Among The World’s Best

August 2, 2023

“Electricity is the nervous system of civilization.” – Thomas Edison.

Malaysia has significantly reformed its electricity industry over the years, making it easier for businesses to access reliable and sustainable electricity. These reforms have been recognized by The World Bank, which ranked Malaysia 4th globally for ease of getting electricity in the World Bank’s Doing Business 2023 report.

The report evaluated the regulatory environment for businesses in 190 economies. Malaysia scored 99.3 out of 100 on the getting electricity indicator, with an average of 8.5 procedures and 17.5 days required to obtain a permanent electricity connection for a newly constructed warehouse.

Malaysia’s ranking in the getting electricity indicator reflects the government’s efforts to improve the business climate in the country. In recent years, the government has streamlined the process of connecting to the electrical grid and reduced the number of required permits. These reforms have made it easier and faster for businesses to get the electricity they need, which is essential for economic growth.

As of 2023, there are 54 operational power plants in Malaysia. These power plants have a combined installed capacity of 25,861.09 megawatts (MW). Most of these power plants, 46.7% and 43.5%, respectively, are thermal and combined-cycle gas turbine (CCGT) power plants that use fossil fuels like coal, natural gas and fuel oil to generate electricity. The remaining 9.8% are hydroelectric power plants that use water to generate electricity.

Top Power Plants in Malaysia by Installed Capacity for Each of The Major Types

Currently, several new powerplants in Malaysia are under construction or in the planning stages,

  • Kapar Combined Cycle Power Plant

This power plant, located in Kapar, Selangor, is being developed by Tenaga Nasional Berhad (TNB) and Widad Business Group with a capacity of 2,100 MW and is expected to be completed by 2031.

  • Pulau Indah Power Plant

With a capacity of 1,200 MW, this power plant is being developed by Pulau Indah Power Plant and is also located in Selangor. It is expected to be completed by 2024.

  • Bintulu II Combined Cycle Power Plant

Sarawak Energy Berhad (SEB) is developing this power plant in Bintulu, Sarawak. It is expected to be completed by 2024 with a capacity of 842 MW.

  • Petronas Gebeng Cogeneration Plant

Petronas Gas is developing the 143MW Petronas Gebeng Cogeneration Plant, which is in the partially active stage. Petronas Gas is the owner of the project.

These new power plants are being developed to meet the growing demand for electricity in Malaysia, and the country’s electricity demand is expected to increase by 6% per year over the next decade. The Malaysian government is dedicated to improving the country’s business environment. With the help of the Malaysian Investment Development Authority (MIDA) in promoting and facilitating investments in industrial estates in Malaysia, they help contribute to economic growth and development.

In a world where businesses are increasingly mobile, Malaysia’s reforms make it a more attractive destination for investment. With its low cost of electricity and streamlined process for obtaining connections, Malaysia is well-positioned to attract new businesses, both domestic and foreign. These power plants have been the backbone to support industrial estate development, which is the mainstay of the Malaysian economy, and they create and retain value in the long run.

Source: Malaysia Industrial Park Directory

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