Malaysia Coal Procurement

Malaysia’s coal import surge creates a short-term opening for U.S. coal suppliers, and U.S. companies can benefit immediately by engaging in Malaysia’s ongoing coal procurement tenders. As part of ongoing trade negotiations with the United States, Malaysia has committed to purchasing $42.6 million annually in coal through its national power utility, Tenaga Nasional Bhd (TNB).

Despite a plan to phase out all its coal-fired power plants by 2044, Malaysia’s power generation mix today is dominated by coal.  Capitalizing on low coal prices, Malaysia has been ramping up coal-fired power to meet rising demand. In the first half of 2025, coal accounted for nearly 60 percent of total power generation.

Malaysia is also importing more coal.  The country has limited coal reserves and relies heavily on imports – primarily from Indonesia and Australia – to meet domestic energy demand, which has been amplified by the expansion of data center projects and pushing coal imports to a record 20.9 million metric tons in the first half of 2025.

To secure supply, TNB Fuel, the procurement arm of TNB, has opened a coal tender valid until December 1, 2025. During this period, suppliers of coal are invited to be pre-qualified as TNB Fuel vendors. U.S. coal suppliers are encouraged to take advantage of this window by reviewing the technical requirements and initiating the pre-qualification process.

Looking ahead, however, the government is sending clear signals that Malaysia intends to phase out coal in the next two decades. Last year, Malaysia’s energy minister announced a national plan to phase out the country’s coal-fired power plants, aiming to cut their number by half by 2035 and fully retire them by 2044. Accordingly, less carbon-intensive energy sources will play a bigger role in meeting the country’s energy demand.

If you represent a U.S. company and want to learn more about this opportunity, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.