ABB, MGTC and Industry Leaders Host Roundtable on Energy Efficiency and AI for World Energy Efficiency Day

• Strategic Dialogue with the National AI Office examines AI adoption landscape in local industries, identifying key barriers and enablers

•  Industry leaders discuss balance between AI benefits for energy transition and increased energy consumption 

• Initiative underpins ABB’s collaboration with MGTC, Atlas Copco (Malaysia) Sdn Bhd, Daikin Malaysia Sales & Service Sdn Bhd, Schaeffler (Malaysia) Sdn Bhd and Business Sweden to catalyze energy efficiency progress 

ABB marked the World Energy Efficiency by hosting a leadership roundtable focused on "Harnessing AI to Drive Energy Efficiency Progress," together with the Malaysian Green Technology and Climate Change Corporation (MGTC). The event convened representatives from the National Energy Efficiency Collaboration (NEEC) and its expanded network of Energy Efficiency Champions to explore transformative strategies for energy efficiency progress.

Founded in 2023, NEEC includes industry leaders such as ABB, Atlas Copco, Daikin, Business Sweden, and Schaeffler, which joined the initiative last year. By pooling their expertise, the Collaboration aims to create a framework to galvanize the adoption of technologies that deliver the greatest value in terms of energy savings and emissions reductions.

Encik Shamsul Izhan Abdul Majid, acting Chief Executive Officer of the National AI Office (NAIO), opened the session by outlining the current landscape of AI in Malaysia, detailing the national AI strategy and key sectors primed for AI adoption, as well as NAIO’s role in positioning Malaysia as an AI hub.

Further reinforcing the impact of AI, Saiful Adib Abdul Munaff, acting Group Chief Executive Officer (GCEO), MGTC said, “The energy sector is the largest source of greenhouse gas (GHG) emissions in Malaysia, accounting for 79.2% in total. As such, addressing this sector presents a huge opportunity to reduce GHG emissions in our country. The intersection of technology and sustainability is crucial. Artificial Intelligence (AI) can be a transformational factor for the energy sector, with the potential to increase innovation, improve efficiency and safety, and accelerate the energy transition.”

“We are at the cusp of an unprecedented era of technological advancement driven by AI which presents opportunities for robust growth and innovation. However, to fully leverage AI's potential, it is essential for stakeholders, including policymakers, industry leaders, technology developers, financial institutions, academia, and civil society, to engage in meaningful discussions that align our environmental and economic priorities with the use of AI,” said R Narayanan, Group Senior Vice President & Head of Motion Business, Asia.

“This dialogue is timely given the exponential rise of AI. It allows discussions on innovations and practical applications of AI in driving energy efficiency, as well as the necessary conditions for engagement, including government-industry cooperation. Collaborations with knowledge experts not only allow us to identify the risks and opportunities but also lay the groundwork for a robust AI ecosystem in Malaysia,” added Khalid Shaikh, General Manager, Atlas Copco Malaysia and Singapore.

Participants acknowledged the substantial potential for advancing AI adoption in energy management but identified several barriers, including the need for high-quality, structured data, a skills gap in the workforce, reliability and security concerns, and the necessity for tailored regulatory frameworks.

In Malaysia, the Energy Efficiency and Conservation Act (EECA) 2024 was enacted to regulate the efficient consumption and conservation of energy. The Act aims to improve energy efficiency across various sectors, reduce waste of energy, and support the country’s environmental goals, including achieving carbon neutrality by 2050. It applies to large energy consumers, specific buildings, and energy using products, setting out the roles and responsibilities of stakeholders to ensure compliance with energy efficiency standards.

“Deploying AI where it matters most can be a game-changer,” noted Chan Hon Leong, General Manager of Marketing & Service at Daikin Malaysia. “For HVAC systems in buildings, AI enabled technologies can be deployed to forecast energy demand based on a wide range of variables such as weather patterns and occupancy levels leading to minimized waste, improved efficiency, and reduced costs.”

Kelvin Chong, Managing Director of Schaeffler Malaysia, added that the integration of AI with IoT devices can optimize asset performance and maintenance costs through real-time data analysis, predictive maintenance, scheduling and enhanced decision-making. “This minimizes unplanned downtime and improves maintenance allocation, resulting in substantial cost savings, increased operational uptime, and overall efficiency.”

“Understanding the connection between AI and energy efficiency in industries is essential. For AI to effectively contribute to decarbonization, a collaborative and coordinated approach is necessary. This involves sharing universally applicable solutions, knowledge exchange, funding mechanisms, workforce upskilling, and policy formulation. Business Sweden is honored to collaborate with like-minded stakeholder such as MGTC on scaling up energy efficiency adoption and exploring the potential of AI-led innovations in Malaysia’s journey to net zero,” concluded Ludvig Hermansson, Trade Commissioner, Business Sweden in Malaysia.

Malaysian Green Technology and Climate Change Corporation (MGTC) is an agency of the Ministry of Environment and Water (KASA) mandated to drive the country in the scope of Green Growth, Climate Change Mitigation and Green Lifestyle. Three national policies, in particular, the National Green Technology Policy (NGTP), the National Climate Change Policy (NCCP) and the Green Technology Master Plan (GTMP), regulated MGTC's role as a catalyst for green economic growth. MGTC's initiatives and programs focus on achieving a long-term impact by 2030 with a 45% reduction rate in the country's greenhouse gas emissions, increasing GDP from green technology by RM 100 billion and generating 230,000 green job opportunities.

Business Sweden is committed to strengthening the collaboration between Malaysia and Sweden, with a strong focus on advancing the green transition. Since 2023, we have proudly partnered with Swedish companies like ABB and Atlas Copco under the Pioneer the Possible initiative to drive sustainable development across industries, particularly in energy efficiency. As a global leader in sustainability, Sweden places energy efficiency at the forefront of our environmental strategy. Swedish businesses in Malaysia are fully aligned with this vision, working closely with their Malaysian partners and customers to make significant strides in energy efficiency. As a founding member of the National Energy Efficiency Conference, Business Sweden reaffirms its unwavering commitment to promoting sustainability in partnership with Swedish companies and actively engages in initiatives that support the UN's Sustainable Development Goals.

ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource- efficient future. By connecting its engineering and digitalization expertise, ABB helps indus-tries run at high performance, while becoming more efficient, productive and sustainable so they out-perform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com

Atlas Copco Group enables technology that transforms the future. We innovate to develop products, services and solutions that are key to our customers’ success. Our four business areas offer compressed air and vacuum solutions, energy solutions, dewatering and industrial pumps, industrial power tools and assembly and machine vision solutions. In 2023, the Group had revenues of BSEK 173, and 53,000 employees. www.atlascopcogroup.com

As a leader in the HVAC industry, Daikin Malaysia is dedicated to developing energy-efficient solutions that not only provide superior comfort but also contribute to a greener future. Daikin Malaysia is proud to participate in the 2nd National Energy Efficiency Conference which in line with Daikin’s vision of “Building a Sustainable Tomorrow” by using its latest advancements in efficient cooling solutions, Indoor Air Quality (IAQ) solutions, and smart control technologies. These innovations highlight Daikin’s ongoing commitment to providing sustainable, energy-saving products that support Malaysia’s environmental goals and UN's Sustainable Development Goals.

The Schaeffler Group has been driving forward groundbreaking inventions and developments in the field of motion technology for over 75 years. With innovative technologies, products, and services for electric mobility, CO₂-efficient drives, chassis solutions and renewable energies, the company is a reliable partner for making motion more efficient, intelligent, and sustainable – over the entire life cycle. Schaeffler describes its comprehensive range of products and services in the mobility ecosystem by means of eight product families: From bearing solutions and all types of linear guidance systems through to repair and monitoring services. Schaeffler is with around 120,000 employees and more than 250 locations in 55 countries, one of the world’s largest family-owned companies and one of Germany’s most innovative companies.