The study employs annual time series data for Malaysia from 1970 to 2008. The variables employed e electricity generation per capita (measured in million k Wh per capita), real GDP per capita
(2000=100), real exports per capita (2000=100) and the CPI (2000=100 )e were extracted from the Department of Statistics Malaysia, Malaysia Economics Reports and IMF International Financial Statistics. Time series plots for all variables employed in the study are provided in exhibits the total amount while Figs. 2 and 3 display the per capita value except the CPI. All variables show an upward trend especially af ter 1990 with increasing slope. There is a significant drop in 2000 for exports. All variables were transformed into natural logs prior to analysis because this helps to induce stationarity in the variance-covariance matrix.