PETALING JAYA — Malaysia expects about nine gigawatts (GW) of gas-fired power capacity to be deployed by 2032 as the country manages growing electricity demand while progressively phasing out coal-fired generation.

Minister of Economy Akmal Nasrullah Mohd Nasir said the capacity would form part of the country’s efforts to manage electricity demand, with the last coal-fired power plant expected to be retired in 2044.

Akmal Nasrullah said energy demand was showing an upward trend, driven by factors including population growth and higher consumption from energy-intensive sectors such as data centres.

“In terms of the projection for energy demand, definitely we see a pattern of increase. One is population growth.

“But number two, there is also an increase in energy consumption by high-usage sectors such as data centres,” he told reporters after the Energy Regulatory Insights 2026 here today.

He said weather and climate conditions could also change energy demand patterns, particularly as hotter conditions increase the need for cooling systems and air conditioning.

Against this backdrop, Akmal Nasrullah said managing energy demand would become as crucial as managing energy supply over the next five to 10 years.

“I think for the next five to 10 years, Malaysia must really remain disciplined enough to ensure our system is continuously upgraded, not just in terms of the power produced, but also the grid and infrastructure, so that our system remains affordable, safe and sustainable,” he added.

He said energy planning should not only focus on the megawatts that need to be deployed in the system, but also on energy efficiency and conservation.