Why Malaysia’s Industrial Energy Savings May Already Be Hiding In Plain Sight

The following commentary is contributed by Ronisingh Chitana, Head of Retrofits for APAC at Sulzer

Malaysia’s Energy Commission has warned Malaysians to prepare for gradually higher electricity prices as fuel costs continue to rise. While the immediate impact is higher energy bills for household consumers, the increase sharpens the focus on how efficiently electricity is being used by industrial operators running energy-intensive equipment as well.

Electricity demand is growing far faster than overall energy use. The IEA’s Global Energy Review 2026 found that global electricity consumption increased by almost 3% in 2025, more than double the 1.3% rise in total energy demand, as buildings and industry used more power. This puts greater pressure on industrial operators to improve the performance of electricity-intensive equipment. Although stronger efficiency gains helped moderate demand growth, progress is still well short of the pace required to double global energy efficiency improvements by 2030.

A major cost-saving opportunity hiding in existing equipment

Industrial pumps represent a significant opportunity to reduce energy use, accounting for more than 20% of global electricity demand. Improving pump efficiency by just 1% could save around 59 TWh of electricity, equivalent to roughly one-third of Malaysia’s annual consumption, and avoid approximately 28 million tonnes of carbon dioxide emissions. In some cases, efficiency gains of 20% to 30% may be achievable.

The Asia Pacific region accounts for approximately 50% of the world’s primary energy consumption due to rapid urbanisation and industrialisation, and is responsible for an estimated 52.2% of energy-related CO2 emissions. Since 2015, Southeast Asia’s energy demand has risen by around 40%, while electricity demand has grown twice as fast as overall energy use.

Despite this potential, many operators still assume that a pump running reliably must also be operating efficiently.

Why fragmented efficiency programmes leave savings on the table

Improving pump efficiency can deliver significant financial savings, potentially reducing energy costs by millions of dollars. Yet many efficiency programmes continue to prioritise major assets such as boilers, turbines and other process-critical equipment, while overlooking the combined energy use of high-demand pumps.

Assessments are also often based on a single point in time, without considering historical performance data. In other cases, operators receive limited follow-up support to confirm that projected savings are being achieved, or do not make full use of digital tools for ongoing analysis and monitoring.

This creates a case for a more comprehensive approach that brings consultancy, retrofitting and continuous monitoring into a single process. Combining digital analysis, machine learning and real-time monitoring with practical engineering expertise can help operators reduce energy intensity while improving reliability and extending the time between failures.

Building a stronger business case for efficiency upgrades

Before committing to an upgrade, operators need a clear view of how equipment is currently performing and where inefficacies are affecting operating costs. The first step is to establish a baseline to understand where improvements can be made. This involves collecting historical data and comparing to the original pump design to understand whether it is running to its best efficiency point, and the pump’s hydraulic and mechanical properties are reviewed against modern, efficient design. Each pump can be analysed to understand what carbon and cost savings are possible, and the work prioritised to address those that will have the most impact first.

Different retrofit options should be made available so that the operator can balance their appetite for energy, carbon and potential tax savings against their opex, capex, downtime and payback goals. Options could include re-rating pump hydraulics to match the plant’s current processing requirements, improvement of mechanical properties to reduce mechanical losses, and surface treatment of the pumps’ volutes / impellers to reduce friction. Any proposal presented should outline the target return on investment and payback period, along ESG metrics, for example carbon and fuel saved.

Performance should continue to be tracked after the work is completed. Ongoing monitoring helps operators confirm whether the expected savings are being achieved, monitor any deterioration over time and ensure that the equipment continues to deliver the energy efficiency uplift that it said it would.

Where targeted upgrades are already delivering returns

Companies are increasingly recognising the tangible benefits of improving pump efficiency, from lower operating costs to stronger reliability and reduced carbon emissions.

Industrial pumps offer considerable scope for energy savings. A more integrated approach to operation and maintenance, combining digital tools with practical engineering expertise, can improve a plant’s financial, environmental and operational performance. At scale, these gains could help moderate growth in global energy demand, support industrial decarbonisation and strengthen the reliability of critical infrastructure.

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