Malaysia Coal Import Market Overview
Malaysia has relied heavily on imported coal for electricity generation for years. In 2024, coal accounted for roughly 32.3% of installed power generation capacity, or about 13.1 gigawatts, while gas made up around 37.6%, or 15.3 gigawatts. However, Malaysia has committed to a structural energy transition, aiming to cut coal power capacity roughly in half by 2030 and phase it out entirely by 2045.
Coal import value spiked sharply in 2022, driven largely by a global energy price shock rather than a genuine increase in Malaysia's coal consumption. Since then, however, import value has declined steadily for three consecutive years, consistent with both easing global coal prices and Malaysia's gradual shift toward gas-fired power and renewable energy sources.
| Metric | Value |
|---|---|
| Total Coal Import Value (2025) | $3.97 Billion |
| 2022 Peak (for reference) | $7.01 Billion |
| Decline Since 2022 Peak | ▼ 43.4% |
| Coal Share of Power Capacity (2024) | ~32.3% |
| Gas Share of Power Capacity (2024) | ~37.6% |
| Coal Phase-Out Target | 2045 |
Malaysia Coal Import Value — 2021 to 2025 Trend
Import value jumped sharply in 2022 as global energy markets faced significant disruption, pushing coal prices to unusually high levels worldwide. Since that spike, however, Malaysia's coal import value has fallen for three straight years, tracking both normalizing global prices and the country's structural shift away from coal-fired power generation.
| Year | Import Value (USD) | YoY Growth |
|---|---|---|
| 2021 | $4.02 Billion | — |
| 2022 | $7.01 Billion | ▲ 74.4% |
| 2023 | $5.20 Billion | ▼ 25.8% |
| 2024 | $4.49 Billion | ▼ 13.7% |
| 2025 | $3.97 Billion | ▼ 11.6% |
The Flip Side: Rising Gas Imports, Falling Coal Imports
This decline pairs neatly with two other trends already visible in Malaysia's trade data. Malaysia's LNG import volumes rose from 2.1 million tonnes in 2021 to 3.3 million tonnes in 2024, while gas turbine and turbojet equipment imports grew over sixfold in the same period, reaching $3.42 billion in 2025. Taken together, coal is declining precisely as gas-related imports are rising — a clear, data-driven signature of an energy source substitution already underway.
Notably, this transition faces real complexity. Electricity demand from data centers reached roughly 3% of total demand in the first nine months of 2025, a threefold increase year-on-year, driving overall commercial electricity demand up 7.7%. As a result, even as coal is phased down, rapidly rising baseline demand means gas — and increasingly renewables — must absorb both the retiring coal capacity and substantial new growth simultaneously.
What's Driving Malaysia's Coal Import Decline
1. Structural Coal Phase-Down Commitments
Malaysia has committed to reducing coal power capacity by roughly half by 2030 and phasing it out completely by 2045. Consequently, this long-term structural shift is already visible in declining import figures well ahead of the final phase-out date.
2. Normalizing Global Coal Prices
The 2022 spike in import value was driven substantially by a global energy price shock rather than higher physical coal consumption. Therefore, as global prices normalized in subsequent years, import value naturally declined even without dramatic changes in underlying demand.
3. Expanding Renewable Energy Capacity
Malaysia has been running new large-scale solar auctions, targeting several gigawatts of new capacity by 2027 as part of a broader renewable energy buildout. As a result, this growing renewable capacity gradually reduces the relative role coal plays in the overall power generation mix.
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Despite the clear downward trend, however, coal still supplied roughly 32% of Malaysia's installed power capacity as of 2024, meaning the transition remains far from complete. For example, if rapidly rising electricity demand from data centers and broader economic growth outpaces new gas and renewable capacity additions, coal retirement could face delays despite existing commitments. Furthermore, since coal-site repurposing for solar and battery storage is still an emerging strategy rather than a fully proven approach, the pace of this transition will likely remain uneven across different regions of the country.
Frequently Asked Questions (FAQs)
What is HS Code 2701 in Malaysia's import data?
HS Code 2701 covers coal, briquettes, and similar solid fuels manufactured from coal. Malaysia imported approximately $3.97 billion worth of coal in 2025, down 43% from a 2022 peak of $7.01 billion.
Why did Malaysia's coal imports spike in 2022?
The 2022 spike was driven primarily by a global energy price shock that pushed coal prices to unusually high levels worldwide, rather than a genuine increase in Malaysia's physical coal consumption.
Is Malaysia phasing out coal power?
Yes. Malaysia has committed to reducing coal power capacity by roughly half by 2030 and phasing it out completely by 2045, shifting toward gas-fired power and renewable energy sources in the meantime.
How does the coal decline connect to Malaysia's rising gas imports?
As coal imports have fallen, Malaysia's LNG import volumes and gas turbine equipment imports have both risen sharply over the same period, reflecting a data-driven substitution from coal toward gas as an energy source.
How can I access Malaysia's coal import data by buyer and supplier?
MalaysiaTradeData.com provides verified Malaysia import data including HS code-level breakdowns, shipment records, buyer and supplier names, and country-wise statistics. Visit our Malaysia Import Data page to get a free sample.
