West Asia tensions highlight need for energy security, transition, says DPM

KUALA LUMPUR (April 9): Recent geopolitical tensions in West Asia have emphasised the urgency for Malaysia to strengthen its energy security and accelerate its transition efforts, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the volatility of global energy markets proved that energy security is not theoretical, but is deeply structural.

“We face a delicate balance, transitioning away from fossil fuels while safeguarding energy security.

“Short-term gains from high oil prices must not distract us from long-term vulnerabilities because true security is not about what we earn today but what we can sustain tomorrow,” he said in his keynote address at the Malaysia Energy, Water & Climate Change Summit 2026 here today.

The summit, themed “Implementing Infrastructure, Renewable Energy, and Water Reform for a Net Zero Malaysia”, was also attended by KSI Strategic Institute for Asia Pacific president Tan Sri Michael Yeoh.

Fadillah, who is also Minister of Energy Transition and Water Transformation, said that across ASEAN, similar pressures are unfolding, and history has shown that during a crisis, the instinct is often to retreat, delay transition and extend reliance on fossil fuels.

“But we must resist that instinct. A nation is not defined by what it promises, but by what it delivers consistently, quietly and with conviction.

“The energy transition is not a climate obligation. It is a strategic necessity. Every megawatt of renewable energy we generate locally is a step away from vulnerability, and a step toward sovereignty,” he said.

He said Malaysia has already established a clear policy direction through the National Energy Transition Roadmap (NETR), but stressed that implementation must now translate into action.

“First, the grid. Renewable energy is no longer the constraint. Transmission is. Without grid expansion, our ambitions will remain stranded,” he said.

On the tariff reform, Fadillah said subsidies may soften the present, but they burden the future, and a sustainable system must reflect real costs so that investment can follow.

Meanwhile, he added that Malaysia loses over 30 per cent of treated water, with more than 40 per cent in some states.

“And yet, tariffs remain disconnected from operational realities. We cannot expect sustainability from a system that cannot sustain itself.

“Technology offers solutions, (such as) smart metering, artificial intelligence (AI) detection (of water leaks), optimisation systems, but technology alone is not enough. If energy powers our growth, water determines whether that growth can endure,” he said.

He also said federal commitment must be matched by effective implementation at the state level, stressing that alignment is critical to delivering large-scale transformation.

“Transformation does not happen in silos. It happens in unity,” he said. – Bernama