The Energy Efficiency and Conservation Act 2024 (EECA 2024) is Malaysia’s new energy law that came into force on 1 January 2025. It was created to help Malaysia use energy more carefully, reduce waste, and work toward the country’s goal of carbon neutrality by 2050.
The law is managed by the Energy Commission (Suruhanjaya Tenaga or ST) and covers large energy users, commercial buildings, and products that use energy.
In simple terms: if your business uses a lot of energy, this law requires you to manage it properly — and prove it to the government. Under the new EECA compliance framework in Malaysia, businesses must actively monitor, report, and improve their energy usage practices.
Does the EECA 2024 Apply to Your Business?
Who Is Considered an “Energy Consumer” Under EECA?
Your business is classified as an Energy Consumer under EECA 2024 in Malaysia if your total energy use from all sources — electricity, natural gas, steam, chilled water, and others — is 21,600 gigajoules (GJ) or more in any 12-month period.
A simpler way to check your position:
- Your yearly electricity bill is RM2.4 million or more, OR
- Your yearly natural gas bill reaches RM1 million or more
If either of these applies, your business is in scope.
Important: The EECA 2024 Act, Malaysia currently applies only to Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak will develop their own separate energy efficiency regulations.
According to compliance experts, over 2,000 businesses in Malaysia fall within this threshold.
What Are the EECA 2024 Compliance Requirements?
4 Things Your Business Must Do Under EECA 2024
1. Appoint a Registered Energy Manager (REM)
This is the most urgent step. Under EECA compliance Malaysia, you must appoint a Registered Energy Manager from within your own company — this cannot be an external consultant. The REM must be:
- A Malaysian citizen
- Trained and qualified with the right credentials
- Registered with the Energy Commission
- Holding a valid practising certificate
The REM is responsible for managing your Energy Management System, monitoring energy use, and submitting compliance reports.
2. Build an Energy Management System (EnMS)
An Energy Management System is a structured, documented plan that shows how your business tracks and reduces energy use. You must have this in place and working.
The two most widely accepted EnMS in Malaysia are ISO 50001 (the international standard) and EMGS (the ASEAN Energy Management Gold Standard). The Energy Commission also accepts an EnMS that meets their basic requirements directly, without full ISO certification.
3. Conduct a Mandatory Energy Audit
Within 12 months of receiving a notice from the Energy Commission, your business must complete a mandatory energy audit Malaysia conducted by a Registered Energy Auditor (REA). This audit must be repeated every five years.
4. Submit Energy Efficiency and Conservation Reports
Your REM must prepare and submit official reports to the Energy Commission at regular intervals. These reports document your energy performance and show progress toward efficiency targets.
What Is the Compliance Timeline Under EECA 2024?
Many businesses are confused about when exactly they need to act. Here is the simplified timeline:
- 1 January 2025 — EECA 2024 comes into force
- Within 12 months of receiving EC notice — You must appoint your REM (within 3 months of the notice) and complete your first energy audit
- Within 12 months of REM appointment — Your Energy Management System must be established and operational
- Every 5 years — Energy audits must be repeated and recommendations implemented
- End of 2025 — Deadline to apply for SEDA’s Energy Audit Conditional Grant (EACG), subject to quota
What Are the Penalties for Not Complying with EECA 2024?
EECA 2024 Fines and Penalties
Non-compliance with the EECA 2024 in Malaysia carries serious consequences. Penalties include:
- Fines of RM20,000 to RM100,000
- Imprisonment of up to 2 years, or both fine and imprisonment
- Being required to undergo additional audits at your own cost
- Possible public disclosure of non-compliance — which affects business reputation and market access
Violations that attract penalties include: failing to appoint a qualified REM, not completing the required energy audit, not displaying an Energy Intensity Label (for buildings), and submitting incorrect information in reports.
What are the EECA 2024 Requirements for Buildings?
Commercial Buildings: Do You Need an Energy Intensity Label?
If you own or manage a commercial building of 8,000 square metres or larger, the EECA 2024 in Malaysia applies to you as well.
You must:
- Apply for an Energy Intensity Label from the Energy Commission
- Display the label visibly in your building at all times — it must be renewed annually
- Ensure your building’s energy intensity meets the prescribed efficiency rating (set at a maximum of 250 kWh/m²/year for commercial buildings)
- If your building does not meet the rating, you must arrange an energy audit and create an Energy Efficiency Improvement Plan
If your building does not meet the rating, you must arrange a mandatory energy audit Malaysia assessment and create an Energy Efficiency Improvement Plan.
This matters because commercial buildings in Malaysia account for 33% of total electricity consumption. The government sees buildings as a critical area where energy savings can be made quickly.
Why Are Most Malaysian Businesses Still Not Ready?
The ISO 50001 Gap: Malaysia vs Thailand
Malaysia currently has only around 50 to 60 companies certified under ISO 50001 — the international benchmark for energy management systems. Thailand, a similar-sized economy, has over 400 certified companies.
The reason: in Malaysia, most certified companies are multinationals who adopted the standard because their overseas headquarters required it — not because of local regulations. Local Malaysian companies have largely not built formal energy management systems yet.
This creates two immediate problems:
Problem 1 — Not enough Registered Energy Managers. Over 2,000 businesses now need to appoint a qualified Registered Energy Manager Malaysia (REM). The pool of registered professionals is small. Companies that delay will face a shortage of available, qualified candidates.
Problem 2 — No energy management foundation. Many businesses have never formally tracked energy beyond paying their utility bills. Building a compliant EnMS from scratch takes time, training, and internal commitment from top management — none of which happens overnight.
Is There Government Support Available?
SEDA Energy Audit Conditional Grant (EACG) — Apply Before End of 2025
Yes. The government has created a financial support mechanism through SEDA (Sustainable Energy Development Authority Malaysia) called the Energy Audit Conditional Grant (EACG).
This grant helps cover the cost of your first energy audit — one of the most significant upfront compliance costs under EECA 2024. The Energy Commission accepts the audit report produced under the EACG as an official submission, provided a Registered Energy Auditor approves it.
Applications are open until the end of 2025, subject to available quota. If your business qualifies, this is a cost-effective way to start your compliance journey.
Step-by-Step: How to Start EECA Compliance for Your Business
EECA 2024 Compliance Checklist for Malaysian Businesses
Step 1 — Calculate your annual energy consumption. Add up all energy sources: electricity, gas, steam, and others. Check whether you cross the 21,600 GJ threshold or RM2.4 million electricity bill mark.
Step 2 — Identify a potential REM candidate inside your company. They should have an engineering or technical background that makes them eligible for training and registration with the Energy Commission. Begin the registration process early — it takes time.
Step 3 — Choose your Energy Management System framework. Decide whether to pursue ISO 50001, EMGS, or the Energy Commission’s basic EnMS guidelines. ISO 50001 offers the most international recognition. EMGS is ASEAN-aligned. Both are accepted.
Step 4 — Apply for the SEDA Energy Audit Conditional Grant. Before the quota closes at end of 2025, apply for the EACG to reduce the cost of your mandatory energy audit.
Frequently Asked Questions About EECA 2024 Malaysia
The Energy Efficiency and Conservation Act 2024 is Malaysia’s new law that requires large energy users, commercial buildings, and energy product manufacturers to manage their energy use, appoint qualified professionals, and submit regular reports to the Energy Commission. It came into force on 1 January 2025.
Any business in Peninsular Malaysia or the Federal Territory of Labuan that uses 21,600 GJ or more of energy per year — equivalent to roughly RM2.4 million in annual electricity bills — must comply.
A Registered Energy Manager is a qualified professional, certified by the Energy Commission, responsible for managing a company’s energy use under EECA 2024. They must be a Malaysian citizen employed directly by the company — not an external consultant.
An Energy Management System is a structured plan and process for tracking, managing, and reducing energy consumption within an organisation. Under EECA 2024, large energy consumers must establish and operate a compliant EnMS.
Penalties range from fines of RM20,000 to RM100,000, and in serious cases, imprisonment of up to two years.
No. EECA 2024 currently applies only to Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak will develop their own separate energy regulations.
Yes. SEDA offers the Energy Audit Conditional Grant (EACG) to help businesses cover the cost of their first mandatory energy audit Malaysia. Applications are open until end of 2025, subject to available quota.
The EECA 2024 is not a future concern. It is active law with active enforcement. The businesses that take their first steps now — calculating consumption, identifying an REM, and beginning their EnMS — will face less cost, less pressure, and fewer penalties than those who wait for a notice to arrive.
