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Essay on Failures in Malaysia's Economic Growth

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Malaysia is a Southeast Asian country, occupying parts of the Malay Peninsula and the island of Borneo. It is known for its beaches, rainforests and mix of Malay, Chinese, Indian and European culture references. Its capital is Kuala Lumpur. In 2021, Malaysia’s population is 33.42 million, it is an undeveloped country. Malaysia is very special among unique countries in the world. It is because, the diversity of races, religions and cultures. Malaysia’s climate is tropical, and they have natural resources including tin, petroleum, timber, copper, iron, natural gas and bauxite.

Moving on to electricity in Malaysia, electricity is the current or power that we use in everyday uses, for example, the light we use, fridge, TV, electrical oven, dishwasher etc. All these things depend on electricity, which are the important things in our daily life. If all electricity is shut down, this would be an electricity crisis. In Malaysia, regarding economy growth, they are productive, but sometimes, they would fall. Kuala Lumpur as a whole capital would state or agree on one point: “We have become increasingly concerned by the number of negative trends that have prevailed for some time, which are not receiving the attention they should. If these trends are not reversed, they will have significant negative consequences for Malaysia’s economic growth. These trends are slower growth, financial crisis, weak productivity and loss of global competitiveness”. This was stated November 2020, which proves that Malaysia’s economic growth is not stable. Malaysia has a huge awareness on the amount and purpose they use their electricity for, the measurement results showed that the average energy consumption of one house in Malaysia is 25.8 kWh (kilowatt per hour) per day during weekend, and 21.9 kWh per day during weekday with 11.5 kWh per day for the air conditioner only. All these results, were of course, before the year 2020, before Covid-19 had spread, and resulted in the pandemic. Carbon dioxide emissions, in the country have increased by 221% which lists the nation 26th among the top 30 greenhouse gas emitters in the world, and of course as a result of this pandemic and lockdown, the energy consumption raised by 50%.

Do Malaysia have the availability in generating enough electricity for the whole country? Malaysia does enjoy near 100% electrification in 2018. Unfortunately, in the pandemic, things have become upside down, not as planned, Malaysia recently saw on 20 July 2020 a 23% spike in residential electricity shortage during the Covid-19 nationwide lockdown. There is no problem or shortage of electricity in Malaysia, except for the pandemic and some blackouts, but that is not their usual. Malaysia would not need to import electricity, instead they export, because of their surplus, in the times they had more electricity than what is needed. The main country they export to Singapore. They import, but not very often, only under one condition, when they need to use renewable resources which they are not producing locally. So, they do not import because of shortage, they import for cleanliness and greenness of their country, so global warming does not occur. These imports by Malaysia helped Malaysia in their tough times, they needed these imports to take care of their economy, and as well to reduce the usage of no-renewable resources, which significantly impacting people having asthma, these people are the most exposed people, for being tired, and more ill. These people could have severe damage, if Malaysia keeps using fossil fuels, and the other non-renewable resources, which will cause global warming which will cause people having asthma to get tired, and maybe forced to leave their country, if they keep using these non- renewable resources. That is why these imports helped Malaysia.

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Here is a problem, Malaysia does not use its tropical resources in generating electricity, although these tropical resources that they have are so helpful for them in generating electricity. About storage in Malaysia, Singapore-based electrify Pte Ltd CEO Martin Lim said that there are discussions about storage energy using hydrogen also known as hydrogen energy storage, especially with the opportunity available in east Malaysia. Malaysia and Singapore are interconnected with electricity. Malaysia export electricity to Singapore. Sabah (state in Malaysia) has a huge potential in storing electricity. Heads up to Malaysia, they have set up a plan target for 2030, where they would generate 20% from renewables. When they apply this plan in 2030, they would use this excellent way to store their electricity, which is the hydrogen energy storage. The hydrogen energy storage is a process where there is a surplus of energy created by renewables during low energy demand periods, is used to power electrolysis (process in which an electrical current is passed through a chemical solution in order to separate hydrogen). This process is used when storing electricity in Malaysia in 2030. Usually, Malaysia would not need to store electricity in a proper way, because they use non-renewable resources mainly. That is why they came up with the renewable resources plan by 2030. Malaysia’s regulatory body for the electricity supply industry, the Energy Commission (EC), has reminded Malaysians that the government’s electricity subsidy cannot go on forever and that consumers should use electricity wisely. Acting chief executive and senior director of Electricity Industry Development and Market Regulation, Azhar Omar, said in an interview with Bernama Radio recently, that subsidies coming to an end will be the inevitable, and Malaysians should be prepared for what comes next. The point here, is that Malaysians have a problem, they do not use electricity wisely, and at the same time they do not have that much money to pay the electricity, but Malaysia are not selfish, they are doing the best they can to make their economy one of the developed countries, they cannot keep this subsidy forever. Malaysia really cares about its economy, what proves this is the plan they have done, to be applies by 2030, so no environmental damage happens. One of the main reasons for this 2030 plan, is that Malaysia is mainly relying on non- renewable resources, which is wrong, and they are aware. Malaysia’s main source of electricity generation is fossil fuels. According to the national energy balance, 2010, 53% of the electricity generation is met by natural gas, 40% met by coal, 5% met by hydro, 2% coal. These results are so dangerous, that’s why Malaysia’s government were aware, and they panned the 2030 plan.

In 1990, 1.09 million people in Malaysia did not have access to electricity. By 1995, 895.116 thousand people did not have access to electricity. By 2000, 694.330 thousand people did not reach electricity. By 2005, 507.027 thousand people did not have access to electricity, the b 2016, 0 people. This shows us that from 1990 till 2016, many people did not reach electricity in their homes, but from 2016 till now no one is not able to reach electricity. People in Malaysia did not leave the country at times like 1990. They were not happy, they were mad. The president was aware and tried to find solutions, so the contribution is equal throughout the country, and it is 5 years from 2016. Malaysia was affected negatively, but they were not giving up, because they were aware, that is why they have 100% equal distribution throughout their country.

To conclude, Malaysia is not careless about it is economy, besides, they are doing their best to make their country, one of the developed countries. Their only problem was is that they use loads of fossil fuels, and other non-renewable resources, for electricity generation, they didn’t take an advantage of their tropical resources. When storing electricity, best strategy. When distributing the electricity, they have gone from 1.09 million people in 1990 to 0 people in 2016. Their 2030 plan will make them one of the developed countries.

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Essay on Failures in Malaysia’s Economic Growth. (2023, January 31). Edubirdie. Retrieved September 22, 2023, from
“Essay on Failures in Malaysia’s Economic Growth.” Edubirdie, 31 Jan. 2023,
Essay on Failures in Malaysia’s Economic Growth. [online]. Available at: <> [Accessed 22 Sept. 2023].
Essay on Failures in Malaysia’s Economic Growth [Internet]. Edubirdie. 2023 Jan 31 [cited 2023 Sept 22]. Available from:
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