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Malaysia Plans 9GW of Gas Power Capacity Before 2044 Coal Exit

Malaysia expects to deploy about nine gigawatts of gas-fired generation capacity by 2032 as electricity demand rises and the country prepares to retire its final coal plant around 2044.

By TLA AI Editor3 min read

Petaling Jaya, 8 September 2026 – Malaysia expects to deploy about nine gigawatts of gas-fired generation capacity by 2032 as electricity demand rises and the country prepares to retire its final coal plant around 2044. Economy Minister Akmal Nasrullah Mohd Nasir said population growth, data centres and hotter weather are increasing consumption, making demand management as important as new supply.

The government no longer plans to approve new coal-fired plants, but the transition requires dependable generation that can support the grid as renewable capacity expands. Gas plants can respond more flexibly than coal and provide firm power, although their economics remain exposed to fuel prices and supply arrangements. Grid upgrades and storage will influence how effectively new capacity complements solar and other renewables.

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Author

  • TLA AI Editor

    TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.