New ABB report shows energy efficiency investments rising in Malaysia – execution now defines industrial advantage

• 63 percent of industrial leaders in Malaysia have already invested in energy efficiency and a further 33 percent plan to within 12 months - yet results remain fragmented and uneven

• Energy consumes 25 percent of operating costs in Malaysia, and 61 percent say rising costs threaten profitability - but barriers have shifted since 2022, from cost to data, skills and organizational silos

• Digital readiness in Malaysia reaches 84 percent, and 85 percent agree total cost of ownership should guide investment in energy efficiency – however, only 42 percent consistently apply this approach

Based on a survey of 2,700 senior decision‑makers across 15 countries and 15 industries, the study, developed in partnership with Sapio Research, finds that 63 percent of respondents in Malaysia have already invested in energy efficiency and a further 33 percent plan to within the next 12 months. Yet, progress is increasingly constrained by execution gaps.

Energy accounts for 25 percent of operating costs on average in Malaysia, and 61 percent of companies say rising energy costs continue to threaten profitability. For executives, the challenge has shifted from reacting to price spikes to managing persistent price volatility and structural exposure.

Compared to the global average, Malaysia shows an average energy cost burden (25% vs 25% globally), above-average profitability threat perception (61% vs 59% globally), and the highest level globally of digital readiness (84% vs 67% globally).

"Energy efficiency has become a foundation for business continuity, compliance, and long-term value creation. It's a condition for market access," explains S Kanavati, Vice President, Motion Services, ABB Malaysia Sdn Bhd. "Today, leaders care about optimizing energy use. What they struggle with is deployment, at scale, and over time."

Execution, not intent, is now the differentiator

The study shows that digital readiness in Malaysia has reached 84 percent, with respondents already using or ready to deploy digital energy‑management tools. However, readiness alone does not guarantee results. Only 42 percent of Malaysia companies consistently apply total cost of ownership (TCO) when making investment decisions - despite 85 percent agreeing it should guide purchasing.

At the same time, responsibility for energy efficiency remains fragmented across executive management, operations, sustainability, maintenance and finance, with no single function clearly accountable.

"The barriers to energy efficiency have fundamentally changed," adds Pearl Ong, Regional Service Manager, Asia, Motion Services, ABB Malaysia Sdn Bhd. " Cost is no longer the main blocker for many organizations globally - it has fallen from 50 percent to 43 percent since 2022. What's holding companies back now are organizational silos, skills gaps and a lack of usable data. That's a critical inflection point. It tells us the challenge is helping businesses turn intent into repeatable execution."

In Malaysia, the most significant barriers to energy efficiency are the costs (54%), the potential for downtime and disruption (44%), and a lack of specialist resource (36%).

Renewables alone are not enough

The research also points to a growing risk of 'post‑renewables complacency'. Among organizations in Malaysia that have switched to renewable energy sources (43% of respondents), 37 percent report a reduced focus on energy efficiency.

While renewables lower the carbon intensity of energy, they do not reduce the volume consumed - meaning significant efficiency gains remain untapped, even for companies that have already secured green power. As a result, opportunities to strengthen resilience, control long‑term costs and reduce exposure to volatility are being left on the table.

When asked about their primary reasons for investing in energy efficiency, respondents in Malaysia said reducing energy costs (63%), complying with regulations (53%), and improving their resilience and competitiveness (49%).

The next phase of the industrial energy transition will be defined by delivery capability. While activity levels are high across businesses in Malaysia and globally, efforts remain shallow, lacking coordination and long‑term structure.

"To close the execution gap, ABB combines diagnostics with targeted modernization of motor‑driven systems, software‑based optimization tools, outcome‑based financing and lifecycle services," concludes Pearl Ong. "End-to-end energy intelligence is another way we help industries outrun, leaner and cleaner - turning isolated initiatives into sustained performance gains."

For the full report, visit this page.

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