Finance Minister II Datuk Seri Amir Hamzah Azizan outlines Malaysia’s dual strategy of domestic energy stability and regional power integration to achieve its net-zero goals.
KUALA LUMPUR: Malaysia is steadfastly shifting towards renewable energy while ensuring a stable power supply base to anchor national stability.
Finance Minister II Datuk Seri Amir Hamzah Azizan detailed this strategy during a panel at the International Monetary Fund Spring Meetings.
He noted Malaysia’s relative fortune in possessing domestic energy resources, particularly natural gas. This self-reliance in gas helps assure stability in electricity generation and supply within the country.
The nation does, however, depend on imports for liquid fuels and must manage this dependency carefully. A key lesson for Malaysia as a developing economy has been the necessity of sending correct market signals through subsidy reforms.
Historically, heavy subsidisation kept costs low for the population but proved very expensive and widened fiscal deficits. “What we needed to do was to reform,” Amir Hamzah stated, explaining the move towards a fairer balance that supports key groups.
Such fiscal discipline allows the market to better sort supply and demand and enables more effective efficiency measures. Looking ahead, Malaysia remains committed to its “Net Zero by 2050” target and will accelerate the transition towards renewables and the national grid.
Regional cooperation is crucial to this transition, with the Asian Power Grid being a key project. “If we can have that redistribution in a better form, everybody will be induced to make sure the system is stable,” Amir Hamzah said.
He emphasised that integrated regional power grids reduce system redundancies. This approach also binds regions to be more co-dependent with each other, enhancing overall stability.
The IMF session, titled “The Future of Economic Integration in a Fragmenting World,” was broadcast live from the fund’s website.
