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In December, Malaysia increased natural gas-fired power generation by nearly 5%, offsetting a 4.3% decline in coal-fired output, according to data from the Grid System Operator (GSO). Natural gas accounted for a significant portion of electricity supplied to Peninsular Malaysia, which represents approximately 80% of national demand.

While gas use is rising, Malaysia anticipates that natural gas will surpass coal as the primary power source only in the next decade. The country's natural gas output rose 11.8% year-on-year in the third quarter, contributing to a 29% decrease in LNG imports for 2025, which fell to 2.26 million metric tons, while exports reached a record 28.25 million tons.

Coal's share in annual power generation is projected to increase from 56.5% in 2024 to 58.6% in 2025, while the share of gas is expected to decline to 33.1%. Solar power generation also saw a 12.6% increase, raising its share to 2.4%.