- 70 percent of ABB survey respondents believe technological advancements are a key driver to accelerate the energy transition
- Nearly three quarters of organizations are allocating over 10 percent of their CAPEX toward energy transition initiatives to support a low-carbon future
- Over the next five years, 78 percent of businesses anticipate increasing renewable energy consumption by over 20 percent
Just over 70 percent of organizations across essential energy sectors in Malaysia are allocating over 10 percent of their CAPEX toward energy transition initiatives, according to respondents in the Asia Pacific Energy Transition Readiness Index 2025 – an industry research survey conducted by ABB’s Energy Industries division. The data demonstrates that organizations view the energy transition not as a compliance cost, but as a strategic investment in long-term competitiveness and resilience.
Digitalization tops investment priorities at 42 percent, followed by automation (33 percent) and electrification (26 percent), supporting Malaysia’s commitment to enable a low carbon future. The ABB research also reveals that the country’s focus on digitalization is ahead of the Asia Pacific regional average of 38 percent, highlighting the country’s focus in leveraging technology to accelerate decarbonization and support operational efficiency.
The Asia Pacific Energy Transition Readiness Index 2025 surveyed over 4,000 business leaders responsible for automation, electrification, digitalization and sustainability strategies across 10 industries and 12 geographical markets, including Malaysia. It focuses on energy-intensive industries including chemicals, data centers, energy and power generation, manufacturing, oil and gas and transportation.
The results indicate that Malaysia is ready to embrace technology, with 71 percent of respondents citing artificial intelligence (AI) and automation as pivotal to enabling the energy transition. By harnessing AI, companies can drive decarbonization efforts, boost energy efficiency, and modernize power systems. AI enables smarter, data-driven energy management, encourages greater investment in advanced smart grid technologies, and facilitates improved interoperability across energy infrastructures, positioning the industry for a more sustainable and resilient future.
“As Malaysia’s energy transition progresses, automation, digitalization, and AI solutions will play a significant role in improving energy efficiency, streamlining complex operations, and supporting consistent, reliable performance,” said Abhinav Harikumar, Vice President of ABB’s Energy Industries division, Southeast Asia. “These technologies are not just innovative, they are important levers in building a resilient, low-carbon future and help maintain Malaysia’s leadership in sustainable energy.”
As technology becomes central to energy operations, the need for robust cyber security grows. With more connected systems and data-driven tools, protecting operational technology (OT) is critical. The Readiness Index reveals that 93 percent of organizations report being prepared, highlighting a strong awareness that resilience and trust depend on securing the digital backbone of the energy transition.
The research results also highlighted that where challenges exist, collaboration across public and private sectors can help close critical gaps. One quarter (25 percent) cite public-private partnerships among the top three untapped opportunities in the energy transition. Almost three quarters (63 percent) of organizations call for stronger government incentives, while 61 percent want more cross-regional collaboration on grid infrastructure, and 52 percent advocate for increased private sector investment.
Organizations in Malaysia also recognize that renewable energy integration and portfolio diversification are just as critical as optimizing the efficiency of existing infrastructure, according to respondents. 78 percent anticipate increasing renewable energy consumption by over 20 percent in the next five years.
ABB’s research also indicated that solar is poised to lead Malaysia’s energy transition, with 70 percent of surveyed organizations in Malaysia already adopting it. Other key emerging sources including hydropower (54 percent), green hydrogen (45 percent), and wind (44 percent) are also gaining traction, in line with the government’s National Energy Transition Roadmap (NETR) that outlines targets for 70 percent renewable energy in the power mix by 2050.
Conducted between May and June 2025, the research demonstrates Asia Pacific’s strong commitment to the energy transition. Unlocking the region’s full potential will require stronger alignment between investment priorities and transition demands, faster adoption of key technologies, and deeper stakeholder engagement. Full report available here.
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