SINGAPORE/KUALA LUMPUR (Jan 8): Malaysia boosted natural gas-fired power generation and slashed reliance on coal in December, grid operator data analysed by Reuters shows, as rising production bolstered local supply and helped expand liquefied natural gas (LNG) exports. The Southeast Asian nation of 35 million, however, expects natural gas to overtake coal as its main source of power only in the next decade. Power consumption in Peninsular Malaysia has been rising in recent years due to a surge in demand from energy-guzzling data centres, pushing it to crank up reliance on coal-fired power. A 12.6% increase in solar power generation also helped a marginal rise in its annual share to 2.4%, from 2.1% in 2024. Solar output is crucial for keeping power generation costs low in Malaysia, as it pivots away from coal and uses more gas.

Source: The Edge Markets January 08, 2026 08:21 UTC