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As a developing country, Malaysia's prosperity and welfare depends heavily on having access to reliable and secure supplies of energy. As a result, the country's future energy requirements have become a policy priority in recent years. Energy is essential for human life, and a secure and accessible supply of energy becomes important for the modern societies. Fossil fuels such as coal, oil, and natural gas are currently the world's primary energy sources and continue to provide energy source to the world. These energy sources have depleted in reserves in recent years and they can also cause irreparably damage to the environment such as global warming and climate change. These environmental concerns can be addressed, to some extent, through more sustainable solutions such as the use of renewable energy resources. In Malaysia, the economic and environmental impacts of fossil fuels use have become hard to ignore. The government has introduced and implemented policy measures to address concerns surrounding the use of fossil fuels and to promote energy efficiency and renewable energy use. In this paper, we review the historical evolution of Malaysian energy policies and initiatives designed to secure diverse energy sources and avoid over-reliance on fossil fuels. In recent years, Malaysia has been catching up with global call to shift to renewable energy use and is now putting a focus on renewable energy in its future energy mix. The paper also discusses challenges and concerns over the future of sustainable energy of the country. [ABSTRACT FROM AUTHOR]

Malaysia, as one of the top energy subsidizing countries, has announced to remove energy subsidies necessarily, not only to reduce energy consumption and the government budget deficit but also to improve overall efficiency and air quality. Therefore, this study evaluates the impacts of rationalizing energy subsidy and its energy efficiency improvement during 2010–2030 using a dynamic recursive computable general equilibrium model. Results revealed that reducing energy subsidies decreases energy consumption and emissions of all air pollutants. While the economic performance of the country improves in the long run due to stimulation in capital demand and investment, it reduces in the short run. Energy efficiency also improves by 1.1% and 2.3%, in the short run, in response to a reduction of 10% and 100% in energy subsidies, respectively. Energy efficiency improvements decrease the negative effects of pure subsidy policies on real GDP, trade, investment, and household consumption. The efficiency improvement policies also are effective in reducing more level of the rebound effect and lead to more energy saving in the economy, particularly in the petroleum products sector. The impacts on the rebound effect also differ across economic sectors. The results of this study provide new insights for energy subsidy policy and energy efficiency and suggest that additional tools and policies are required for improving the energy efficiency caused by phasing out energy subsidies. Malaysia, as one of the top energy subsidized countries, attempts to reduce the level of energy subsidies over time and, consequently, decline the use of fossil fuels in the economy. Therefore, this study analyzes the impacts of different subsidy reform policy on energy efficiency and, consequently, on economic and environmental performance and rebound effect of Malaysia by a recursive dynamic computable general equilibrium model. [ABSTRACT FROM AUTHOR]

The increase in energy demand has caused considerable attention to be directed toward sustainable energy resources. The importance of electricity generation through solar energy has been intensively highlighted globally, but Malaysia has yet to exert efforts to develop this energy resource. This study explores the social acceptance and level of human interest in solar energy. In addition, this work identifies the difficulties in the consumption of solar energy and the expectations for solar energy development in Malaysia. Survey results show that 80 % of the respondents are highly interested in solar energy. However, the majority of the respondents have reported that some hindrances, such as expensive solar panels and lack of correct information about solar energy utilization, make fuel-generated electricity a preferable choice. Meanwhile, almost 80 % of the respondents believe that government incentives could best enhance solar energy usage nationwide. To implement new solar energy policies successfully in Malaysia, the government should support the establishment of solar power plants, as well as provide complete information and funding for independent research. Furthermore, more than 70 % of respondents perceive the government to be the main organization that should lead the development of this energy sector. Therefore, this research provides some useful references for policy makers to continue promoting the use of solar energy in Malaysia. [ABSTRACT FROM AUTHOR]