Malaysia is taking a significant leap in its energy efficiency journey with the enactment of the Energy Efficiency and Conservation Act (EECA). This legislation marks a transformative milestone in the country’s commitment to sustainability, aiming to reduce energy consumption, minimize waste, and support long-term carbon neutrality goals by 2050.
The Act was officially gazetted on 26 November 2024 and came into force on 1 January 2025. As the implementing and regulatory authority, the Energy Commission of Malaysia (EC) introduced this legislation to enhance energy efficiency measures, promote conservation practices, and support Malaysia’s commitment to sustainable development and climate change mitigation through the regulation of energy-efficient practices.
Revised MEPS for Room Air Conditioners (RACs)
A major regulatory advancement under the EECA is the revision of Minimum Energy Performance Standards (MEPS) for Room Air Conditioners (RACs) which will officially begin in January 2026. The updated MEPS categorizes RACs based on cooling capacity:
Category 1: Units with a cooling capacity of less than 4.5 kW
Category 2: Units with a cooling capacity between 4.5 kW and 7.1 kW
The star-rating system for room air conditioners (RACs) ranges from 1-star (least efficient) to 5-star (most efficient), with higher CSPF values indicating better performance and lower energy consumption. These standards help guide local consumers in making informed decisions about energy-efficient appliances.
In 2026, the minimum CSPF requirement for a 2-star rating will increase to 4.1 Wh/Wh for units with a rated cooling capacity of less than 4.5 kW. Similarly, for units with a rated cooling capacity between 4.5 kW and 7.1 kW, the threshold for a 2-star rating will rise to 4.0 Wh/Wh. These changes reflect a gradual push towards higher energy efficiency standards.
By 2030, the requirements will become even more stringent, with the 2-star rating threshold increasing to 6.09 Wh/Wh for both cooling capacity ranges. The 5-star rating threshold will also increase to 7.5 Wh/Wh for smaller capacity units and 7.0 Wh/Wh for larger ones.
The revised MEPS for RACs can be accessed on the Energy Commission of Malaysia’s official website, on pages 9 and 10 of the Guidelines on Energy-Using Product publication.
National Impact and Long-Term Benefits
Ir. Ts. Zulkiflee Umar, Director of the Energy Efficiency & Conservation Department, Energy Commission Malaysia, stated: “The revision of the MEPS for room air conditioners under the Energy Efficiency and Conservation Act (EECA) 2024 marks a transformative milestone in Malaysia’s transition to sustainable energy practices. This enhanced energy efficiency standard aligns with the National Energy Transition Roadmap (NETR), which targets a 20% reduction in residential energy consumption and a 32% reduction in CO₂ emissions in the energy sector by 2050. Ensuring more affordable and efficient cooling solutions reinforces Malaysia’s commitment to global best practices and ASEAN regional commitments while driving innovation and supporting long-term sustainability goals.”
The annual savings potential from using energy-efficient RACs in Malaysia is estimated to reach 17 TWh of electricity consumption by 2040, which represents about 10% of the country’s total electricity use. This level of savings is equivalent to avoiding the need for 7 power plants with a capacity of 500 MW each. It would also reduce greenhouse gas emissions by 11 million tonnes of CO₂-equivalent, which is comparable to taking 6 million cars off the road. Additionally, it could lead to annual electricity bill savings of USD 1.3 billion by 2040.
Regional Collaboration: ASEAN Cool Initiative
UNEP-United for Efficiency (U4E) has been actively supporting EC in implementing the MEPS for RACs in Malaysia under the ASEAN Cool Initiative by conducting a comprehensive market assessment to analyze energy consumption trends and market landscape for RACs in Malaysia, producing a techno-economic assessment report to demonstrate the cost-benefit implications of higher efficiency standard and providing technical assistance during stakeholder consultations to gather industry input and ensure practical implementation of the MEPS. A series of awareness-raising activities are being planned to promote the adoption of energy-efficient RACs while advocating to the public on the revised MEPS.
Funded by the Clean Cooling Collaborative (CCC) and implemented by UNEP-U4E, the ASEAN Cool Initiative aims to accelerate the adoption of the ASEAN Regional Policy Roadmap for efficient RACs—pushing countries toward Regional Phase II CSPF levels of 6.09 Wh/Wh. This initiative partners with the ASEAN Centre for Energy (ACE) to implement activities at the regional level, together with other partners including Lawrence Berkeley National Laboratory (LBNL), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the International Institute for Energy Conservation (IIEC).
Regional and Global Harmonization of MEPS
Through the EECA and updated MEPS, Malaysia strengthens its commitment to regional and global energy efficiency targets. 16 SADC countries have already approved a harmonized MEPS level of CSPF 6.1 by 2027. Similarly, Singapore plans to raise its MEPS to a WCOP of 4.86 (equivalent to CSPF 6.1) by 2025.
Establishing energy efficiency standards in a coordinated manner across multiple countries—ensuring alignment with ACE under the ASEAN Regional Roadmap and U4E Model Regulation Guidelines— will benefit consumers, manufacturers, and governments by capturing cost and energy savings while minimizing environmental impacts and encouraging innovation in the industry.
To remain effective, efficiency standards must be periodically updated to prevent the persistence of obsolete technologies and capitalize on emerging innovations. For more information on the ASEAN Cool Initiative and the work in Malaysia, contact Zafe Fazilah Abu Bakar at zafe.fazilah@un.org and Saikiran Kasamsetty at saikiran.kasamsetty@un.org .