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Electricity hikes fuel rising interest from Malaysian industry in energy management: Schneider Electric study

AvantiKumar | June 4, 2015
78% of Malaysian businesses said that cost savings are driving the use of energy management solutions including the use of analytics, said Schneider Electric's Soo Pow Leong.

Soo Pow Leong - Schneider Electric Malaysia 

Photo - Soo Pow Leong, Country President, Schneider Electric Malaysia

 

Businesses across industries in Malaysia are showing increasing interest and use of energy management solutions following a tariff increase, according to a survey held in conjunction with energy management specialist Schneider Electric's recent customers and partner summit in Malaysia,

Schneider Electric Malaysia's country president Soo Pow Leong said 78 percent of the 218 Malaysian businesses polled from various industries, were now "actively incorporating energy management into their corporate strategies and 78 percent believe that cost savings is the biggest driver for adoption of energy management solutions in their organisations."

"The survey findings clearly indicate that energy management solutions are on the rise across all industries in Malaysia and becoming a core business competency for Malaysian organisations," Soo said. "Energy management is not an option but a necessity for businesses to achieve the business resiliency and efficiency necessary to maintain competitiveness in the highly globalised and competitive world."

He added that 61 percent of businesses were challenged by organising the funding of new energy management solutions as well as the lack of dedicated personnel to undertake project implementation.

Soo said the poll especially noted that the increase in operating costs was fuelled by the January 2014 hike in electricity tariffs, which was reflected by 47 percent of businesses reporting an increase of between 20-50 percent in their operating costs while 53 percent agreed that their operating cost had increased by up to 20 percent.

 Analysing energy consumption

"What's really interesting is that the survey showed that most of business in Malaysia are prepared to tackle the rise in electricity costs," he said. "Some 61 percent of the respondents said that they have already adopted energy audit exercises in the past 12 months, while 22 percent are already tracking and analysing data on their energy consumption."

"The numbers highlight the importance of energy management for business in Malaysia and signals the need for experts in energy solution to help business owners to reduce energy cost and improve on energy efficiency," Soo said.

 

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