Pusat Tenaga Malaysia (PTM) was registered on 12th May 1998 as a not-for-profit company. During its formative infancy, PTM will be administered by the Ministry of Energy, Communications and Multimedia (MECM), Malaysia. PTM is also governed by a Board of Directors (BOD) which sets its policy directions.

The rationale behind PTM's establishment is to fulfill the need for a national energy research centre that will co-ordinate various activities, specifically energy planning and research, energy efficiency, and technological research, development and demonstration (R,D&D) undertaken in the energy sector due to the long lead time for energy projects to come on stream.

In fact, PTM will eventually become a one-stop focal point for linkages with the universities, research institutions, industries and other various national and international organisations on energy matters.