Malaysia launched the National Energy Efficiency Policy and Action Plan 2026–2035 (NEEAP 2.0) at the 7th International Sustainable Energy Summit on August 11 in Kuala Lumpur [1, 2, 3, 4].

The plan aims to save RM85.24 billion in utility costs and reduce national energy demand by 11.6 percent, delivering cumulative energy savings of 815,000 terajoules by 2035 [1, 2, 3, 4]. It also targets a reduction of about 26 million tonnes of carbon dioxide equivalent emissions over the same period [1, 2, 3, 4].

NEEAP 2.0 is guided by the Energy Efficiency and Conservation Act 2024, which Economy Minister Akmal Nasrullah Mohd Nasir said "marks an important shift towards institutionalising efficiency across our economy. Together with the next phase of national policy, including thermal energy management, it will encourage users to optimise consumption, improve competitiveness and reduce pressure on the grid" [1]. Nasir stressed that "energy efficiency must become standard business practice and a national productivity tool, and ultimately, a way of life" [3].

The policy focuses on four strategic thrusts: embedding energy efficiency plans, reskilling and upskilling the workforce, creating sustainable funding mechanisms, and facilitating private sector initiatives [1, 3]. It prioritizes improvements in industrial, building, and domestic sectors through energy audits, efficient facilities, and regulation of new equipment and appliances [1, 3, 4].

Over its 10-year span, NEEAP 2.0 is expected to create around 29,000 new jobs and attract about RM36 billion in private sector investments [2, 3, 4].

NEEAP 2.0 aligns with Malaysia’s National Energy Policy 2022–2040, National Energy Transition Roadmap, New Industrial Master Plan 2030, and the 12th and 13th Malaysia Plans [1, 3].

The plan builds on results from NEEAP 1.0, which from 2016 to 2025 delivered electricity savings of 60,886 gigawatt-hours, exceeding its 52,233 GWh target, and reduced greenhouse gas emissions by 35.6 million tonnes while generating RM16.1 billion in cost savings [1, 3].

Implementation of NEEAP 2.0 will proceed through coordination with industry stakeholders and government agencies, with progress tracked regularly through the decade-long timeframe [1, 3].