Deputy PM Fadillah Yusof says modernising Malaysia’s grid is crucial for a competitive low-carbon economy, urging AI efficiency and clean energy projects
KUALA LUMPUR: Malaysia must modernise its power systems to build a competitive, inclusive and resilient low-carbon economy.
Deputy Prime Minister Datuk Seri Fadillah Yusof said digitalising the economy with trustworthy artificial intelligence is also a crucial step.
He said translating climate ambition into bankable and investable projects is essential for achieving this national goal.
“We therefore call on utilities to bring forward projects that measurably reduce curtailment, accelerate connections and harden systems against extreme weather,” he said.
Fadillah delivered his opening keynote address at the Global AI, Digital and Green Economy Summit 2025.
The Energy Transition and Water Transformation Minister urged manufacturers and building owners to deploy AI-enabled efficiency and storage solutions.
He said the government expects data centre investors to design for efficiency and clean energy from day one.
Financiers are invited to properly price integrity, resilience and speed to impact, he added.
Fadillah noted that strengthening partnerships among ASEAN countries can help expand interconnectors and harmonise rules.
He stated that the grid remains the primary bottleneck for renewable energy growth.
Without faster expansion and digitalisation of transmission, renewable energy growth will stall, he warned.
Compute demand from AI training is surging and reshaping load patterns while stressing local infrastructure.
Only projects meeting stringent efficiency and clean energy thresholds will be supported, he said.
“Above all, integrity must remain the foundation of our efforts,” Fadillah emphasised.
He said carbon credits and renewable energy certificates must withstand independent scrutiny and full transparency.
The government is aligning policy and regulation to ensure AI becomes an enabler of grid resilience.
Malaysia’s direction focuses on building a modern grid and a digital economy powered by trustworthy AI.
The nation is also focusing on climate finance systems that deliver real-world decarbonisation. – Bernama
