KUCHING: Sarawak is well-positioned to withstand the impact of the global energy crisis and geopolitical uncertainties thanks to its aggressive transition towards green energy, said Deputy Minister for Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni.
Speaking via a recorded video message as the guest of honour at the opening of the Offshore Energy Asia 2026 Conference at Le Meridien Hotel, Kota Kinabalu, recently, Hazland said the state’s long-term investments in renewable energy have strengthened its resilience against global supply disruptions and volatile fossil fuel markets.
“The ongoing global energy crisis and volatile geopolitical situation have placed unprecedented strain on global supply chains, disrupted traditional energy corridors and triggered widespread economic pressure.
“Our energy systems can no longer rely on fragile, fragmented architectures but must be built for structural and long-term resilience. As an open economy, Malaysia is highly exposed to these disruptions.
“However, Sarawak is in an exceptionally strong position to manage and buffer against these global shocks due to its advanced pivot toward green energy,” he said.
Dr Hazland said Sarawak’s strategy combines immediate relief measures with long-term investments in renewable energy to safeguard economic growth and energy security.
He noted that, in collaboration with the Federal Government, Sarawak continues to implement targeted fuel subsidies for commercial vehicles, riverboats and inland generator sets to help stabilise transportation and essential supply chains.
He added that more than 60 per cent of Sarawak’s electricity is generated from hydropower, enabling the state to offer among the lowest unsubsidised electricity tariffs in Southeast Asia while reducing its dependence on volatile fossil fuel prices.
The state is also working towards increasing its renewable energy generation capacity to 15 gigawatts by 2035 through hydropower expansion, including pumped storage hydropower and cascading run-of-river projects.
Dr Hazland said Sarawak is also strengthening its position as a regional green energy hub through its hydrogen economy initiatives, including the H2ornbill and H2biscus projects, while advancing sustainable aviation fuel, microalgae biofuels and waste-to-energy technologies.
He added that Sarawak has successfully transformed itself into ‘the Battery of ASEAN’ by exporting renewable electricity through cross-border interconnections to West Kalimantan, Sabah, Brunei and Singapore, generating new revenue streams while enhancing regional energy security.
On the offshore energy industry, Dr Hazland stressed that energy security, operational safety and cybersecurity must now be regarded as critical priorities.
“We must develop a sustainable, diversified and competitive offshore energy sector, while placing innovation, digitalisation, ESG practices and a just energy transition at the core of our strategies.
“None of this can be achieved without an unwavering commitment to the safety of our workforce, the protection of our digital networks against cyber threats and the security of our critical offshore infrastructure,” he said.
Dr Hazland also called for stronger public-private partnerships and deeper regional collaboration, describing Offshore Energy Asia 2026 as an important platform to promote investment, knowledge exchange and business opportunities across the region.
“Sarawak is not merely adapting to the changing global energy landscape; we are actively shaping it. Guided by the Sarawak Energy Transition Policy and our Sustainability Blueprint, we are leading developments in clean hydrogen, carbon capture, utilisation and storage, floating solar technologies and human capital development to support the global energy transition,” he said.
He officially declared Offshore Energy Asia 2026 open, urging participants to use the conference to forge partnerships that will strengthen supply chains, enhance energy resilience and secure the region’s industries for the future.
