Written by Fatin Ismail
The Electricity Supply (Amendment) Bill 2025 (‘the Bill’) was passed at the Dewan Rakyat on 30 July 2025. It was subsequently passed by the Dewan Negara on 9 September 2025.
The Bill contains several key insertions and amendments which in essence provides for the importation and exportation of electricity as well as the introduction of ‘green attributes’.
Key Insertions
New Part IVA – Importation and Exportation of Electricity
Section 22D is introduced requiring a licence for importing or exporting electricity. Licences are granted by the Energy Commission (‘EC’) with Ministerial approval, valid for up to 21 years. As for any unlicensed trade, a fine up to RM 30 million and/or 10 years’ imprisonment may be imposed.
New Part VIA – Green Attributes
Section 32A empowers the Minister to set standards, specifications, and measures for “green attributes”. Green attributes refer to the environmental benefits or “credits” associated with generating electricity from renewable sources, separated from the physical electricity itself. These can be traded separately from the actual electricity, enabling companies or countries to claim renewable energy usage even if they consume conventional electricity locally. This aligns with Malaysia’s broader energy transition goals and cross-border renewable power trade ambitions.
New Section 22C – Market Operator
Section 22C authorises the Minister to appoint a Market Operator to manage electricity transactions, planning, and settlement, ensuring fair and secure system operations.
Section 4 – Regulatory Function of EC
The insertions of subsections 4(ld) and 4(le) empowers EC to license and regulate the import and export of electricity.
Conclusion
In conclusion, the Electricity Supply (Amendment) Bill 2025 represents a significant evolution in Malaysia’s energy regulatory landscape. By formally introducing licensing requirements for the importation and exportation of electricity and the concept of tradable ‘green attributes’, the Bill aligns regulatory mechanisms with the ambitions of cross-border energy trade and renewable energy transition.
However, while these amendments provide a clear legal foundation, their effectiveness will depend heavily on how the regulations are operationalised and enforced. Key questions remain around how licences will be awarded, how the market operator will function and be governed under Section 22C, and how transparent and accessible the market for green attributes will be in practice.
Ultimately, the Bill opens the door for Malaysia to participate more competitively in the regional energy market and to integrate sustainability considerations into the electricity sector’s structure. Stakeholders should monitor the roll-out closely, engage in the development of the supporting regulations, and prepare for the implications of this new framework.
Published on 11 November 2025