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Abstract: Energy is essential to the way we live. Whether it is in the form of oil, gasoline or electricity, a country''s prosperity and welfare depends on having access to reliable and secure supplies of energy at affordable prices. However, it is also one of the benefits taken for granted by many people, knowing little about the impact of electricity on their lives. Having dependent mainly on oil and gas for half a century, Malaysia has started to realize the importance to adopt renewable energy in the energy mix and continuously reviewed its energy policy to ensure sustainable energy supply and security. This paper examines and discusses the intricacy of the existing and new energy policies, issues and challenges in Malaysia. The overall approach in addressing the energy issues and challenges will continue to focus on adequacy, quality, security and sustainability of both non-renewable and renewable energy supply in the country''s development and the promotion and implementation of its energy efficiency programs. The recently launched National Green Technology Policy is also discussed. [Copyright &y& Elsevier]