Enlightening Malaysia's Energy Policies and Strategies for Modernization and Sustainable Development

Authors: Hussain Ali Bekhet, Nor Salwati Othman

Abstract:

Malaysia has achieved remarkable economic growth since 1957, moving toward modernization from a predominantly agriculture base to manufacturing and—now—modern services. The development policies (i.e., New Economic Policy [1970–1990], the National Development Policy [1990–2000], and Vision 2020) have been recognized as the most important drivers of this transformation. The transformation of the economic structure has moved along with rapid gross domestic product (GDP) growth, urbanization growth, and greater demand for energy from mainly fossil fuel resources, which in turn, increase CO2 emissions. Malaysia faced a great challenge to bring down the CO2 emissions without compromising economic development. Solid policies and a strategy to reduce dependencies on fossil fuel resources and reduce CO2 emissions are needed in order to achieve sustainable development. This study provides an overview of the Malaysian economic, energy, and environmental situation, and explores the existing policies and strategies related to energy and the environment. The significance is to grasp a clear picture on what types of policies and strategies Malaysia has in hand. In the future, this examination should be extended by drawing a comparison with other developed countries and highlighting several options for sustainable development.

Keywords: Energy policies, energy efficiency, renewable energy, green building, Malaysia, sustainable development.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1126269

References:

[1] M.A. Jalil, “Sustainable Development in Malaysia: A Case Study on Household Waste Management”, Journal of Sustainable Development, vol.3, pp.91-102, 2010.
[2] A. E. l. Quahrani, J.M. Mesa, and Merzouki, “Anthropogenic CO2 Emissions from Fossil Fuels: Trends and Driver in the Mediterranean Region”. International Journal of Climate Change Strategies and Management, vol.3(1), pp.16-28, 2011.
[3] International Energy Agency (IEA). “Decoupling of global emissions and economic growth confirmed”, 2016. Retrieved from https://www.iea.org/newsroomandevents/pressreleases/2016/march/decoupling-of-global-emissions-and-economic-growth-confirmed.html. (Accessed on 14th June, 2016).
[4] N. Stern, “The Economics of Climate Change: The Stern review”. Cambridge University press. Great Britain, 2007.
[5] H. C. Siong, “Urban Governance and Rapid Urbanization Issues in Malaysia”. Journal Alam Bina, vol.13(4), pp.1-24, 2008.
[6] World Bank. “East Asia’s Changing Urban Landscape: Measuring a decade of spatial growth”. 2015. Retrieved from https://openknowledge.worldbank.org/handle/10986/2174. (Accessed on 20th Feb, 2016).
[7] S.M. Shafie, T.M.I. Mahlia, H.H. Masjuki, and A.A. Andriyana, “Current Energy Usage and Sustainable Energy in Malaysia: A review”. Renewable and Sustainable Energy Reviews, vol.15, pp.4370-4377, 2011.
[8] R. A. Begum, K. Sohag, S.M.S. Abdullah, and M. Jaafar, “CO2 Emissions, Energy Consumption, Economic and Population Growth in Malaysia”. Renewable and Sustainable Energy Reviews, vol.41, pp.594–601, 2015.
[9] P. Nejat, F. Jomehzadeh, M. M. Taheri, M. Gohari, and M.Z.A. Majid, “A Global Review of Energy Consumption, CO2 Emissions and Policy in the Residential Sector (with an overview of the top ten CO2 emitting countries)”. Renewable and Sustainable Energy Reviews, vol.43, pp.843–862, 2015.
[10] Economic Planning Unit (EPU), “The 11th Malaysia Plan (2016-2020). Percetakan Nasional Malaysia Berhad”, Kuala Lumpur, 2015. Retrieved from http://www.epu.gov.my. (Accessed on 3rd June, 2016)
[11] Ministry of Energy, Green, Technologies, and Water (KeTTHA). Green Tech Malaysia. Low Carbon Cities, 2011, Retrieved from http://www.greentechmalaysia.my/v4/about-us/our-expertise/low-carbon-cities-framework. (Accessed on 12th Mei, 2016).
[12] N.A. Basri, A.T. Ramli, A.S. Aliyu, “Malaysia Energy Strategy toward Sustainability: A Panoramic Overview of the Benefit & Challenges”. Renewable & Sustainable Energy Review, vol.42, pp.1094-1105, 2015.
[13] Department of Statistic Malaysia (DOSM), “Gross Fixed Capital Formation 2005–2013”, 2014, Retrieved from https://www.statistics.gov.my/images/stories/files/LatestReleases/account/2013/GFCF_Press_Release_BI.pdf. (Accessed on 5th June, 2016).
[14] C.F. Tang, C.Y. Yip, and I. Ozturk, “The Determinants of Foreign Direct Investment in Malaysia: A Case for Electrical and Electronic Industry”, Economic Modelling, vol.43, pp.287-292, 2014.
[15] Department of Statistic Malaysia (DOSM), “Statistics of Foreign Direct Investment in Malaysia, 2014”, 2015. Retrieved from https://www.statistics.gov.my/dosm. (Accessed on 5th June, 2016)
[16] The Star Online, “Business News. 11th Malaysia Plan: Productivity-driven economic growth”, 2015. Retrieved from http://www.thestar.com.my/business/business-news/2015/05/21. (Accessed on 6th June, 2016)
[17] A.R. Mohammed, and K.T. Lee, “Energy for Sustainable Development in Malaysia: Energy Policy & Alternative Energy”, Energy Policy, vol.34, pp.2388-2394, 2006.
[18] K.Y. Foo, “A Vision on the Opportunities, Policies, and Coping Strategies for the Energy Security & Green Energy Development in Malaysia”. Renewable & Sustainable Energy Review, vol.51, pp.1477-1498, 2015.
[19] N.A. Chik, and K.A. Rahim, “Sources of Change in CO2 Emissions from Energy Consumption by Industrial Sectors in Malaysia”. 9th PERKEM Proceeding, pp.163–174, 2014.
[20] M.S. Indati, and H.A. Bekhet, “Highlighting the Factors and Policies Affecting CO2 emissions Level in Malaysia Transportation Sector”, World Academy of Science, Engineering & Ecological, Geological & Geophysical Engineering, vol.8(1), pp.10-17, 2014.
[21] N. S. M. Safaai, Z. Z. Noor, H. Hashim, Z. Ujang, and J. Talib, “Projection of CO2 Emissions in Malaysia”, Environmental Progress & Sustainable Energy, vol.30(4), pp.658-665, 2011.
[22] E. Dogan, and F. Seker, “Determinants of CO2 Emissions in the European Union: The Role of Renewable and Non-Renewable Energy”. Renewable Energy, vol. 94, pp.429-439, 2016.
[23] E. Dogan, and B. Turkekul, “CO2 Emissions, Real Output, Energy Consumption, Trade, Urbanization and Financial Development: Testing the EKC Hypothesis for the USA”. Environmental Science and Pollution Research. 23, 1203–1213, 2016.
[24] P.Y. Gan, R. Komiyama, and L, ZhiDong, “A Low Carbon Society Outlook for Malaysia to 2015”. Renewable and Sustainable Energy Reviews, vol.21, pp.432-443, 2013.
[25] H.A. Bekhet, and L.L. Ivy-Yap, “Highlighting Energy Policies and Strategies for the Residential Sector in Malaysia”. International Journal of Energy Economics & Policy, vol. 4(3), pp. 448-456, 2014.
[26] A.R. Mohamed, and K.T. Lee, “Energy Policy for Sustainable Development”. International Conference on Sustainable Energy & Environment (SEE), pp.940-944, 2004.
[27] T. S. Jalal, and P. Bodger, “National Energy Policies and the Electricity Sector in Malaysia”. 3rd International Conference in Energy and Environment (ICEE), pp.385-392, 2009.
[28] A.S. Bujang, C.J. Bern, and T.J. Brumm, “Summary of Energy Demand and Renewable Energy Policies in Malaysia”. Renewable and Sustainable Energy Reviews, vol.53, pp.1459–1467, 2016.
[29] S. Mekhilef, M. Barimani, Safari. and Z. Salam, “Malaysia’s Renewable Energy Policies and Programs with Green Aspects”. Renewable & Sustainable Energy Reviews, vol.40, pp.497-504, 2014.
[30] Ministry of Natural Resources and Environment (NRE), “National Policy on the Environment”. 2002. Retrieved from http://www.doe.gov.my. Perpustakaan Negara Malaysia. (Accessed on 6th Mei, 2016)
[31] T. C. Tiong, J. J. Pereira, and K. F, Pin, “Stakeholder Consultation in the Development of Climate Change Policy: Malaysia’s Approach”, A Multinational Conference on Policy Analysis and Teaching Methodson 11th-13th June, KDI School of Public Policy and Management-Seoul, South Korea, 2009.
[32] Ministry of Natural Resources and Environment (NRE), “National Policy on Climate Change”, 2009. Retrieved from http://www.nre.gov.my/ms-my/pustakamedia/penerbitan/dasar. (Accessed on 4th April, 2016).
[33] Ministry of Energy, Green, Technologies, and Water (KeTTHA), 2009. Retrieved from http://www.greentechmalaysia.my/bin/v1/National%20Green%20Technology%20Policy%202009.pdf (Accessed on 3rd June, 2016).
[34] H. Hashim, and W.S. Ho, “Renewable Energy Policies and Initiative for Sustainable Energy Future in Malaysia”, Renewable and Sustainable Energy Reviews, vol.15, pp.4780-4787, 2011.
[35] Ministry of Energy, Green, Technologies, and Water (KeTTHA), “National Renewable Energy Policy and Action Plan”, 2008. Retrieved from http://www.seda.gov.my/ (Accessed on 5th April, 2016).
[36] X. Ji, and B. Chen, “Assessing the Energy-Saving Effect of Urbanization in China Based on Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) Model”, Journal of Cleaner Production, vol.1-9. (Article in press), 2015.
[37] B. Liddle, and S. Lung, “Age-structure, Urbanization, and Climate Change in Developed Countries: Revisiting STIRPAT for Disaggregated Population and Consumption-Related Environmental Impacts, Population Environment”, MPRA Paper No. 59579, vol.31, pp.317-343, 2010.
[38] J. Parikh, and V. Shukla, “Urbanization, Energy Use and Greenhouse Effects in Economic-Development Results from a Cross-National-Study of Developing Countries”, Global Environment Change, vol.5, pp.87–103, 1995.
[39] P. Sadorsky, “The Effect of Urbanization on CO2 Emissions in Emerging Economies”, Energy economics, vol.41, pp.147-153, 2014.
[40] Y. Wang, L. Li, Kubota., R. Han, X. Zhu, and G. Lu, “Does Urbanization Lead to More Carbon Emission? Evidence from a Panel of BRICS Countries”. Applied Energy, vol.168, pp.375-380, 2016.
[41] K. Li, and B. Lin, “Impacts of Urbanization & Industrialization on Energy Consumption/CO2 Emissions: Does the Level of Development Matter?”, Renewable & Sustainable Energy Reviews, vol.52, pp.1107-1122, 2015.
[42] L. Yang, and Y, Li, “Low-carbon City in China”, Sustainable Cities and Society, vol.9, pp.52-66, 2013.
[43] Q. Zhu, and X. Peng, “The Impact of Population Change on CO2 Emissions in China during 1978-2008”, Environment Impact Assess Review, vol.36, pp.1-8, 2012.
[44] Z. Wu, B. Wang, and X. Xia, “Large-scale Building Energy Efficiency Retrofit: Concept, Model and Control”, Energy, vol.109, pp.456-465, 2016.
[45] B. Lin, and H. Liu, “CO2 Emissions of China’s Commercial and Residential Building: Evidence and Reduction Policy”, Building and Environment, vol.92, pp.418-431, 2015.
[46] G. Mavromatidis, K. Orehounig, P. Richner, and J. Carmeliet, “A Strategy for Reducing CO2 Emissions from Building with the Kaya Identity-A Swiss Energy System Analysis and a Case Study”, Energy Policy, vol.88, pp.343-354, 2016.
[47] A.K. Roy, A.R. Mahmood, O. Balslev-Olesen, S. Lojuntin, and C.K. Tang, “Low Energy Office Building in Putrajaya, Malaysia. Case Studies and Innovation”, The 2005 World Sustainable Building Conference, Tokyo, pp.1-65, 2005.
[48] H.A. Bekhet, and E.J. Mat Sahid, “Illuminating the Policies Affecting Energy Security in Malaysia’s Electrical Sector”. International Journal of Social, Behaviorial, Educational, Economic, Business and Industrial Engineering. World Academy of Science, Engineering and Technology, vol.10(4), pp.1149-1154, 2016.
[49] I.A.H. Abdul Rahim, “District Cooling System Industry: Is Regulatory Framework the Answer?”, The Ingenieur, vol.62, pp.62-67, 2015.
[50] BERNAMA, “Suria 1000, A Commitment from Government for Malaysians To Generate Clean Electricity From The Sun”, 2007. Retrieved from http://mrem.bernama.com/viewsm.php?idm=8769. Accessed on 13th June, 2016).
[51] N. Kannan, and D. Vakeesan, “Solar Energy for Future World: - A Review”, Renewable and Sustainable Energy Reviews, vol.62, pp.1092–1105, 2016.
[52] World Bank, “Malaysia Economic Monitor: Transforming Urban Transport June 2015, World Bank IBRD.IDA, 2015b. Retrieved from http://www.worldbank.org/en/country/malaysia/publication/malaysia-economic-monitor-june-2015. (Accessed on 13th June, 2016).
[53] Y-N. Sang, and H.A. Bekhet, “Modelling Electricity Vehicle Usage Intentions: An Empirical Study in Malaysia”, Journal of Cleaner Production, vol.93, pp.75-83, 2015.
[54] News Strait Times Press, “Malaysia to allow imports of 100 Tesla electric cars”, 2016. Retrieved from http://www.nst.com.my/news/2016/02/128186/malaysia-allow-imports-100-tesla-electric-cars. (Accessed on 5th Mei, 2016).
[55] E. Arsenio, K. Martens, and F.D. Ciommo, “Sustainable Urban Mobility Plans: Bridging Climate Change and Equity Targets?” Research in Transportation Economics, pp.1-10. (Article in press), 2016.
[56] W. Liu, and B. Qin, “Low-carbon City Initiatives in China: A Review from the Policy Paradigm Perspective”, Cities, vol.51, pp.131-138, 2016.
[57] S.I. Mustapha, and H.A. Bekhet, “Analysis of CO2 Emissions Reduction in the Malaysia Transportation Sector: An Optimization Approach”, Energy Policy, vol.89, pp.171-183. (2016).
[58] H.C. Siong, A. Azeez, I. Adeyemi, “Low Carbon Cities-The Way Forward in Real Estate Development in Malaysia”, International Journal of Real Estate Studies, vol.8(1), pp.50-59, 2013.
[59] M. Lanza, and B. Stone Jr., “Climate Change Adaptation in Cities: What Trees are Suitable for Urban Heat Management?”, Landscape & Urban Planning, vol.153, pp.74-82, 2016.
[60] E. G. McPherson, “Urban Tree Planting and Greenhouse Gas Reductions”. Arborist News, vol.16, pp.32-36, 2007.
[61] E. Velasco, M. Roth, L. Norford, & L.T. Molina, “Does Urban Vegetation Enhance Carbon Sequestration”, Landscape & Urban Planning, vol.148, pp. 99-107, 2016.
[62] C.L. Brack, “Pollution Mitigation and Carbon Sequestration by an Urban Forest”. Environmental Pollution, vol.116, pp.195-200, 2002.
[63] S. Dhakal, “GHG Emissions from Urbanization and Opportunities for Urban Carbon Mitigation”, Environmental Sustainability, vol.2, pp.1-7, 2010.
[64] X-X. Li, and L.K. Norford, “Evaluation of Cool Roof and Vegetation in Mitigating Urban Heat Island in a Tropical City, Singapore”. Urban Climate, vol.16, pp.59-74, 2016.
[65] T. Dergiades, and L. Tsoulfidis, “Revisiting Residential Demand for Electricity in Greece: New Evidence from the ARDL Approach to Co-integration Analysis”. Empirical Economics, vol.41, pp.511-531, 2011.
[66] Ministry of Energy, Green, Technologies, and Water (KeTTHA), National Energy Efficiency Action Plan. (2014). Retrieved from http://www.kettha.gov.my/kettha/portal/document/files/NEEAP%20 For%20Comments%20Final%20January%202014.pdf. (Accessed on 7th Mei, 2016).
[67] World Bank (2016). Retrieved from http://data.worldbank.org/. (Accessed on 20th Feb, 2016).
[68] Malaysia Energy Information Hub, Energy Commission (2016). Retrieved from http://meih.st.gov.my/statistics . (Accessed on 20th Feb, 2016).
[69] Sustainable Energy Development Authority Malaysia (SEDA) (2016). Retrieved from http://www.seda.gov.my. (Accessed on 20th Feb, 2016).