Fadillah, who is also deputy prime minister, said the transition requires an ecosystem where the public and private sectors work in alignment, stressing that scaling solutions depends on both policy direction and industry execution.

“This transition requires an ecosystem where both public and private sectors can collaborate with confidence to accelerate the transition at scale,” he said at the Energy Transition Conference 2026 here today.

Earlier, Tenaga Nasional Bhd (TNB) president and CEO Shamsul Ahmad said the energy transition had reached a more demanding phase of large-scale implementation due to legacy infrastructure and financial constraints.

Fadillah acknowledged that while the government plays a critical role in setting direction, it is the private sector that brings capital, technology, and operational expertise to scale solutions on the ground.

“Domestically, Malaysia, through TNB, is set to invest RM43 billion, or US$10.8 billion, from 2025 to 2027 to upgrade and strengthen our grid systems, including integrating artificial intelligence as part of efforts to accelerate the renewable energy initiative,” he said.

Fadillah said Southeast Asia’s electricity demand is projected to grow by 4% to 5% annually over the next decade, driven by industrialisation, urbanisation, electric vehicles, cooling demand. and AI-powered data centres.

He added that Malaysia remains committed to diversifying its energy mix and expanding renewable energy capacity under the National Energy Transition Roadmap and the 2026-2030 Petra Strategic Plan as part of its broader push towards net-zero emissions by as early as 2050.

“The energy transition must be not only sustainable, but also inclusive and equitable, creating opportunities for businesses, strengthening communities, improving livelihoods, and ensuring that no one is left behind,” he said.