Malaysia’s sustainable energy transition: Governance, geopolitical implications, challenges, and opportunities

Malaysia, as a rapidly developing nation in Southeast Asia, is actively advancing its energy transition while balancing economic growth, resource dependency, and environmental sustainability. Despite that, Malaysia remains as one of the largest oil and natural gas producers in Southeast Asia, and its oil and gas industry contributes significantly to the country’s annual gross domestic product. Such conflicting scenarios give rise to questions about the geopolitical implications of energy transition for Malaysia and the challenges faced in the transition roadmap. The relationship between energy transition and geopolitical implications in Malaysia has not been thoroughly discussed. This study provides a perspective on this topic by correlating it to world issues including the implications of the OPEC+ agreement, the Covid-19 pandemic, the trade war between the United States of America and China, the Ukraine-Russia war, and the moratorium on the export of coals by Indonesia. Lastly, initiatives undertaken by the country to achieve the energy transition, its progress, and recommendations to boost the energy transition (such as implementing rigorous monitoring and auditing, etc.) are outlined. It is envisaged that this study provides an integrated perspective on governance, geopolitics, policy development, and technological innovation within Malaysia’s energy transition landscape.