Electricity prices are rising. Sustainability demands are tightening. And for Malaysia’s food and beverage (F&B) manufacturers, these two pressures are pushing solar energy from optional to essential.
Data from the Federation of Malaysian Manufacturers shows the squeeze clearly: 41% of manufacturers saw energy bills jump up to 10% in 2023, while 36% faced similar spikes in raw material costs. With margins already thin, many companies are now forced to rethink how they manage energy.
At the same time, global buyers are demanding clearer proof of sustainability. ESG expectations are no longer “nice to have”, they’re becoming the deciding factor for market access.
Manufacturers that can’t show progress risk losing out to competitors who can.
The result? A quiet but rapid shift to solar.
Double Lion Shows How It’s Done
A familiar name on supermarket shelves, K.H.H. Double Lion Fruit Juice Manufacturing, known for its iconic Ros Sirap, recently made the switch to solar with the help of EFS Group.
The move paid off fast.
“Energy costs kept climbing, and buyers are now more focused on sustainability,” said Karin Tan, Director of K.H.H. Double Lion. “Solar let us stabilise our operating costs and show we’re serious about reducing our footprint. Today, solar covers about 40% of our production floor’s electricity.”
EFS Group CEO Darren Tan says the industry mindset has changed dramatically.
“Five years ago, companies did solar for CSR. Today, they do it for competitiveness, predictable energy costs, market requirements, and long-term resilience.”
Malaysia’s Big Push: The Solar ATAP Era
Malaysia’s renewable energy transition is guided by the National Energy Transition Roadmap (NETR), aiming to raise renewable energy capacity to 31% by 2025 and create up to 310,000 green jobs.
The latest catalyst came on 1 December with the launch of the Solar Accelerated Transition Action Programme (Solar ATAP), replacing the Net Energy Metering scheme.
Key features:
- Solar installations allowed up to 100% of maximum demand
- Excess energy can still be sold back to the grid
- Offsets now follow the system marginal price (SMP)
- Existing NEM users can shift to programmes like SelCo or CREAM, or tap into new upcoming initiatives. These changes mark a real push, not just policy talk.
The New Competitive Standard
For F&B manufacturers, solar is now a business strategy, not just an environmental gesture.
- More cost stability
- Stronger sustainability credentials
- Better buyer confidence
- Lower long-term risks
Companies that move now gain an edge. Those that wait risk falling behind as the industry shifts toward cleaner, more transparent operations.
Malaysia is targeting 40% renewable energy in the power mix by 2035, meaning the transition isn’t slowing down.
Solar is no longer about choosing between profit and planet. It’s about choosing to stay competitive in the future of manufacturing.