63% of Malaysian firms back energy efficiency: report

Execution gaps persist despite broad investment plans.

63% of industrial leaders in Malaysia have already invested in energy efficiency, and another 33% plan to do so within the next 12 months, according to a new ABB report.

The study, based on a survey of 2,700 senior decision-makers across 15 countries and 15 industries with Sapio Research, said energy costs account for 25% of operating costs on average in Malaysia, whilst 61% of companies said rising energy costs threaten profitability.

ABB said Malaysia showed the highest digital readiness level globally at 84%, compared with a 67% global average, but execution remained uneven. It said 85% of respondents agreed total cost of ownership should guide energy-efficiency investment decisions, but only 42% said they applied that approach consistently.

The report said responsibility for energy efficiency remained fragmented across management, operations, sustainability, maintenance, and finance, with no single function clearly accountable.

In Malaysia, the main barriers cited were cost at 54%, potential downtime and disruption at 44%, and a lack of specialist resources at 36%.

The research also flagged what it called post-renewables complacency, with 37% of Malaysian organisations that had switched to renewable energy saying they had reduced their focus on energy efficiency.

The main reasons for investing were reducing energy costs at 63%, complying with regulations at 53%, and improving resilience and competitiveness at 49%.