In a significant step towards sustainable energy management, Malaysia has enacted the Energy Efficiency and Conservation Act (EECA) 2024. This law is designed to promote energy efficiency, reduce wastage, and align with the country’s commitment to achieving carbon neutrality by 2050. The EECA, which came into force on January 1, 2025, applies to Peninsular Malaysia and the Federal Territory of Labuan, introducing a structured regulatory framework to ensure businesses and industries adopt energy-saving measures.
One of the key highlights of the Act is its emphasis on energy management. It mandates qualifying entities to appoint registered energy managers who will oversee the development and implementation of energy management systems. These systems are expected to monitor energy usage, propose improvements, and submit regular energy efficiency and conservation reports to the Energy Commission. This approach ensures a structured and continuous focus on reducing energy consumption.
The Act also enforces regular energy audits to assess energy needs and efficiency. These audits, conducted by registered energy auditors, are crucial in identifying inefficiencies and recommending corrective measures. Entities that fail to comply with these requirements may face penalties, underscoring the government’s commitment to accountability. Additionally, the Act addresses energy-using products by mandating energy efficiency labeling and registration for manufacturers and importers. This ensures that consumers have access to information about the energy performance of products they purchase, fostering informed choices and reducing energy wastage.
With the EECA 2024 in place, businesses must assess their current energy consumption patterns and align with the new regulatory framework. Companies operating in energy-intensive sectors should appoint qualified energy managers, establish robust energy management systems, and conduct regular audits to ensure compliance. While these requirements may pose initial challenges, they also present opportunities to enhance operational efficiency, reduce costs, and contribute to Malaysia’s long-term sustainability goals.
The introduction of the EECA 2024 marks a major milestone in Malaysia’s environmental efforts. By enforcing stricter energy efficiency measures, the Act not only helps reduce energy consumption and greenhouse gas emissions but also strengthens Malaysia’s position as a responsible global player in sustainable energy. As businesses prepare to adapt to these changes, they are encouraged to familiarize themselves with the Act’s provisions and take proactive steps toward compliance. Embracing energy efficiency is not just about meeting legal obligations—it is a strategic move toward a more sustainable and cost-effective future.
