KUALA LUMPUR, 19 November 2025 – Just over 70 percent of organisations across Malaysia’s essential energy sectors are allocating more than 10 percent of their capital expenditure towards energy transition initiatives, according to the Asia Pacific Energy Transition Readiness Index 2025, a survey conducted by ABB’s Energy Industries division. The findings underscore that businesses increasingly view the energy transition not as a compliance cost, but as a strategic investment in long-term competitiveness and resilience.
Digitalisation leads investment priorities at 42 percent, followed by automation (33 percent) and electrification (26 percent), reflecting Malaysia’s commitment to enabling a low-carbon future. Notably, Malaysia’s focus on digitalisation surpasses the Asia Pacific regional average of 38 per cent, highlighting the country’s determination to leverage technology to accelerate decarbonisation and enhance operational efficiency.
The survey, which engaged more than 4,000 business leaders across 10 industries and 12 markets, revealed that 71 percent of Malaysian respondents see artificial intelligence (AI) and automation as pivotal to enabling the energy transition. By harnessing AI, companies can drive decarbonisation, boost energy efficiency, and modernise power systems. AI enables smarter, data-driven energy management, encourages investment in advanced smart grid technologies, and facilitates improved interoperability across infrastructures, positioning Malaysia’s energy industry for a more sustainable and resilient future.
“As Malaysia’s energy transition progresses, automation, digitalisation and AI solutions will play a significant role in improving energy efficiency, streamlining complex operations, and supporting consistent, reliable performance,” said Abhinav Harikumar, Vice President of ABB’s Energy Industries division, Southeast Asia. “These technologies are not just innovative; they are important levers in building a resilient, low-carbon future and help maintain Malaysia’s leadership in sustainable energy.”
As technology becomes central to energy operations, cybersecurity emerges as a critical priority. With more connected systems and data-driven tools, protecting operational technology is essential. The Readiness Index shows that 93 percent of organisations report being prepared, reflecting strong awareness that resilience and trust depend on securing the digital backbone of the energy transition.
The research also highlights opportunities for collaboration to close critical gaps. One quarter of respondents cite public–private partnerships among the top three untapped opportunities, while nearly three-quarters call for stronger government incentives. Sixty-one percent emphasise the need for cross-regional collaboration on grid infrastructure, and 52 percent advocate for increased private sector investment.
Organisations in Malaysia recognise that renewable energy integration and portfolio diversification are as vital as optimising existing infrastructure. Seventy-eight percent anticipate increasing renewable energy consumption by more than 20 percent in the next five years. Solar is poised to lead Malaysia’s energy transition, with 70 percent of surveyed organisations already adopting it. Other sources gaining traction include hydropower (54 percent), green hydrogen (45 percent), and wind (44 percent), aligning with the government’s National Energy Transition Roadmap, which targets 70 percent renewable energy in the power mix by 2050.
Conducted between May and June 2025, ABB’s research demonstrates the Asia Pacific’s strong commitment to the energy transition. Unlocking the region’s full potential will require closer alignment between investment priorities and transition demands, faster adoption of key technologies, and deeper stakeholder engagement.
