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Recent geopolitical tensions in the Middle East emphasise the urgency for Malaysia to strengthen its energy security and accelerate its transition efforts, says Deputy Prime Minister Datuk Seri Fadillah Yusof.

In his keynote address at the Malaysia Energy, Water & Climate Change Summit 2026 on Thursday (April 9), Fadillah, who is also Energy Transition and Water Transformation Minister, said true energy security requires sustainable, long-term planning, not short-term gains from high oil prices.

He also highlighted Malaysia’s water challenges, including losses of over 30% in treated water, and stressed that technology alone is insufficient without coordinated federal and state implementation.

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Transcript
00:00We face a delicate balance, transitioning away from fossil fuels while safeguarding energy security.
00:10Recent geopolitical tensions in the Middle East have made this reality immediate.
00:17The volatility of global energy markets remind us that energy security is not theoretical.
00:24It is deeply structural. Short-term gains from high oil prices must not distract us from long-term vulnerabilities because
00:38true security is not about what we earn today, but what we can sustain tomorrow.
00:48Across ASEAN, similar pressures are unfolding, and history has shown us that during crisis, the instinct is often to retreat,
01:01to delay transition, to extend fossil reliance.
01:08But we must resist that instinct.
01:13A nation is not defined by what it promises, but by what it delivers, consistently, quietly, and with conviction.
01:27The energy transition is not a climate obligation.
01:31It is a strategic necessity.
01:34Energy megawatt of renewable energy, every megawatt of renewable energy we generate locally, is a step away from vulnerability and
01:45a step forward towards sovereignty.
01:49So, distinguished guests, ladies and gentlemen, national energy transition road map is clear, but clarity must now translate into action.
02:01First, the greed.
02:05Renewable energy is no longer the constraint.
02:08Transmission is.
02:10Without greed expansion, ambition will remain stranded.
02:14So, starting this year, TNB will be investing about 42 billion Malaysian ringgit to upgrade our greed system.
02:26Second, tariff reform.
02:29Subsidies may soften the present, but they burden the future.
02:34A sustainable system must reflect real costs so that investment can flow.
02:41So, Malaysia loses about 30% of treated water.
02:46In some states, more than 40%.
02:49This is not inefficiency.
02:53This is loss at scale.
02:56And yet, tariffs remain disconnected from operational realities.
03:00We cannot expect accessibility from a system that cannot sustain itself.
03:06So, technology offers solutions, smart metering, AI detection, optimization systems, but technology alone is not enough.
03:19What we need is courage.
03:22Courage to make difficult decisions.
03:25Courage to speak honestly about tariffs.
03:29Courage to reform with urgency.
03:34Water does not demand attention, but its absence will demand consequences.
03:40If energy powers are growth, water determines whether that growth can ensure.
03:47So, as you know, in Malaysia, water falls within the jurisdiction of the state.
03:53Federal are trying to coordinate the good relationship between federal and the state with the support of all the stakeholders.
04:02Right?
04:03From the corporate sectors, the banks, and of course, the NGOs and so on.
04:09And to our state partners, this transition requires alignment.
04:14Federal commitment must be matched by state education because transformation does not happen in silos.
04:24It happens in unity.
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