Malaysia has an abundance of energy resources, both renewable and non-renewable. The largest non-renewable energy resource found in Malaysia is oil, and second, is natural gas, primarily liquefied natural gas. The production and consumption of oil, gas and coal in Malaysia are given in this paper. The energy demand and supply by source are also shown in relation to the country's fuel diversification policy. In order to reduce the overall dependence on a single source of energy, efforts were undertaken to encourage the utilization of renewable resources. Forest residue and oil palm biomass are found to be potentially of highest energy value and considered as the main renewable energy option for Malaysia. Palm oil and related products represent the second largest export of Malaysia. The total oil palm planted area in Malaysia has increased significantly in recent years. This paper gives a detailed representation of oil palm planted and produced together with its yield from the year 1976 onwards. The large amounts of available forest and palm oil residues resulting from the harvest can be utilized for energy generation and other by-products in a manner that also addresses environmental concerns related to current waste disposal methods. (C) 2011 Elsevier Ltd. All rights reserved.