Executive Summary
- Malaysia’s Electric Power Generation, Transmission and Distribution sector (MSIC 3510) represents a critical pillar of the country’s economic and industrial infrastructure, supporting manufacturing activity, urban development, and nationwide electrification demand.
- Between 2022 and 2024, the sector recorded moderate revenue contraction, with total industry Revenue reaching USD 34.21B in 2024, corresponding to Revenue CAGR -5.8% (‘22-‘24). The topline moderation primarily reflects normalization effects following elevated energy price conditions rather than structural demand deterioration.
- Cost dynamics adjusted more significantly over the same period. Cost of Goods Sold (COGS) declined at a faster pace, producing CAGR -13.2%, indicating easing fuel and input cost pressures. This divergence between revenue and cost movements supported sector-wide margin resilience.
- Profitability indicators highlight the sector’s defensive characteristics. Operating Profit remained broadly stable (CAGR -0.2%), underscoring the earnings stability typical of regulated or semi-regulated utility structures. At the net level, the sector recorded Net Profit CAGR +5.1%, signaling gradual earnings stabilization despite revenue normalization.
- Overall, sector performance reflects price-cycle normalization and cost optimization, rather than fundamental demand weakness.
Industry Snapshot 2024
Malaysia’s MSIC 3510 sector encompasses companies engaged in electricity generation, transmission networks, and distribution infrastructure forming the backbone of the national power supply ecosystem.
In 2024, firms operating within MSIC 3510 generated total industry Revenue of approximately USD 34.21B. Compared with prior years, the revenue trajectory reflects a normalization phase consistent with moderating electricity pricing environments and demand stabilization dynamics.
Over the same period, Cost of Goods Sold declined to approximately USD 20.04B, illustrating an adjustment in sector cost structures. Utility-sector economics are inherently sensitive to fuel inputs, generation mix, and commodity price cycles, which exert significant influence on cost behavior and reported margins.
Despite revenue contraction, the sector recorded Operating Profit of approximately USD 5.32B, highlighting the earnings stability characteristic of electricity-related industries. Profitability dynamics in utilities differ remarkbly from industries, as operating outcomes are shaped more by tariff frameworks, regulatory mechanisms, and cost pass-through structures.
At the bottom line, Net Profit reached approximately USD 3.14B, signaling continued earnings resilience. The improvement reflects easing cost pressures and normalization of sector-wide profitability.
As of 2024, 107 companies were active under MSIC 3510, suggesting ongoing industry consolidation and scale rationalization within Malaysia’s power sector.
Industry Characteristics & Operating Landscape
Where do companies typically operate?
Electric power operators in Malaysia are structurally aligned with national infrastructure networks and major demand centers, rather than conventional commercial clusters.
Sector activity is heavily concentrated in Klang Valley (Kuala Lumpur and Selangor), Malaysia’s primary economic and population hub, which represents the country’s largest and most stable electricity load. Additional demand intensity is anchored in key industrial regions such as Penang, driven by electronics and high-tech manufacturing, while Johor continues to emerge as a fast-growing corridor supported by industrial expansion and data center investments. Overall, geographic patterns are determined by grid architecture, physical asset deployment, and industrial demand distribution, reflecting the infrastructure-driven nature of the sector.
What drives demand in this sector?
Demand within MSIC 3510 is fundamentally shaped by macroeconomic activity, industrial production, demographic expansion, and electrification intensity.
Core demand drivers include:
- Industrial and manufacturing electricity consumption
- Urbanization and commercial development
- Household electrification and population growth
- Digital infrastructure and data center expansion
- Energy policy and electrification trends
Electricity demand typically exhibits defensive and relatively inelastic characteristics, although efficiency gains and economic cycles influence short-term fluctuations.
What defines the operational model?
Electric power industries operate under a capital-intensive, infrastructure-heavy economic structure, characterized by:
- High fixed-cost assets and long investment cycles
- Sensitivity to fuel and input cost cycles
- Regulated or semi-regulated pricing frameworks
- Economies of scale and network effects
- Demand stability relative to broader economic cycles
Profitability variability is primarily driven by input cost movements and regulatory mechanisms, rather than volume-driven operating leverage alone.
Interpreting 2022-2024 Performance
The observed Revenue CAGR -5.8% largely reflects normalization effects following elevated pricing conditions rather than structural contraction of electricity demand. Utility revenues are heavily influenced by tariff adjustments, fuel costs, and pricing frameworks, which can produce apparent revenue volatility independent of consumption trends.
The sharper COGS CAGR -13.2% signals easing input cost pressures, likely linked to stabilization of fuel and commodity-linked cost components. This divergence between revenue and costs supports margin preservation typical of utility sectors.
The relative stability of Operating Profit (CAGR -0.2%) highlights the sector’s defensive earnings profile, where regulatory structures dampen profitability swings.
Meanwhile, Net Profit CAGR 5.1% indicates gradual earnings stabilization supported by cost normalization and operating efficiency improvements.
Overall, sector performance reflects input-cost normalization and margin resilience.
What This Means for Investors
- For investors, Malaysia’s MSIC 3510 sector provides exposure to a defensive, infrastructure-anchored industry with earnings dynamics shaped by regulatory frameworks, fuel economics, and long-term electrification trends.
- Key considerations include:
- Sensitivity to fuel prices and generation mix
- Regulatory and tariff adjustment mechanisms
- Capital expenditure cycles and asset utilization
- Demand stability linked to industrial activity
- Energy transition and grid modernization investment requirements
- Value creation within electric power industries is typically associated with operational efficiency, cost management, asset optimization, and regulatory alignment, rather than aggressive expansion narratives.
- Malaysia’s power sector therefore reflects the economics of a stability-oriented infrastructure industry, where resilience and margin preservation remain central investment themes.
About Datagent
Datagent is the trusted intelligence partner for company data and insights across Southeast Asia and beyond. We combine firmographics, financials, macro and micro economics into one integrated dataset — helping organizations uncover opportunities, assess markets, and make smarter, data-backed decisions across 11 dynamic economies.
Datagent provides a total of 61 firmographic data fields, comprising 22 non-financial, and 39 financial indicators with coverage spanning 2022–2024.
This report is for informational purposes only and does not constitute financial advice or an invitation to invest. Decisions should be based on independent research and professional consultation to avoid any unintended liabilities.