Analysis of Macroeconomic Factors of Energy Consumption in Malaysia, Thailand and Indonesia

This paper examines the relationship between GDP, FDI and inflation rate and energy consumption by analyzing time-series data from Malaysia, Indonesia, and Thailand. Data sources include the World Bank, the Malaysia Energy Information (MEI), and the World Development Indicators (WDI) from 2003 to 2023 and were examined by multiple regression analysis. The findings show that energy consumption in Malaysia is significantly impacted by GDP, FDI, and the inflation rate. Energy usage in Indonesia is significantly influenced by both GDP and FDI. In contrast, the GDP and inflation rate are the main variables that have a major impact on energy use in Thailand. These findings have important implications for policymakers that provide insights into the trends in economic development across different countries. Policy makers must develop coordinated energy usage and economic policies to achieve resilient and long-lasting economic development.