Malaysia boosted natural gas-fired power generation and sharply reduced use of coal-fired generation in December 2025, according to data from Malaysia’s Grid System Operator (GSO).

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Gas-fired power generation accounted for the majority of a 5 per cent rise in electricity supplied to peninsular Malaysia in December 2025, while there was a 4.3 per cent decline in coal-fired power generation.

However, it is anticipated that natural gas will not overtake coal as its main source of power until the 2030s.

Prateek Pandey, head of Asia-Pacific oil and gas research at Rystad Energy , said: “The reliance on gas for power generation is expected to increase gradually, with a more meaningful shift occurring only after 2030.”