Energy efficiency is becoming a critical issue for industrial organisations in Malaysia, according to a new report by ABB. The study, conducted with Sapio Research, surveyed 2,700 senior decision-makers across 15 countries and industries, revealing that 63% of Malaysian respondents have already invested in energy efficiency, with another 33% planning to do so within the next year. Despite these investments, many companies struggle to achieve consistent results due to execution challenges.
Energy costs account for 25% of operating expenses in Malaysia, with 61% of companies citing rising costs as a threat to profitability. The report indicates that the focus has shifted from reacting to price spikes to managing ongoing price volatility. Malaysia’s digital readiness stands at 84%, the highest globally, yet only 42% of companies consistently apply the total cost of ownership approach to guide energy efficiency investments.
S Kanavati, Vice President of Motion Services at ABB Malaysia, noted, “Energy efficiency has become a foundation for business continuity, compliance, and long-term value creation. What leaders struggle with is deployment at scale and over time.”
The report also identifies organisational silos, skills gaps, and a lack of usable data as significant barriers to energy efficiency. Pearl Ong, Regional Service Manager Asia at ABB Malaysia, stated, “Cost is no longer the main blocker. The challenge is helping businesses turn intent into repeatable execution.”
Despite a shift to renewable energy sources, 37% of organisations report a reduced focus on energy efficiency, highlighting the need for continued efforts to improve resilience and competitiveness. ABB aims to address these challenges by offering diagnostics, modernisation of motor-driven systems, and lifecycle services to close the execution gap.
