Malaysia is rich in renewable energy (RE) resources. Hybrid systems of these resources can contribute strongly to the electrification and sustainable development of rural areas that do not have access to electricity grids. The integration of the generation of hybrid renewable power in remote and rural areas supplies the required power demand and mitigates emissions. Thus, this study reviews the latest literature (theses, journals articles, and conference proceedings) on the need for electricity in remote rural communities, on hybrid RE systems, on environmental impact, and on economic regulation in Malaysia. Power in this country is mainly generated by fossil fuels that emit high concentrations of greenhouse gases. Thus, RE is a potential alternative for to electrify rural areas, to meet current and future energy demands, and to mitigate emissions. Moreover, Malaysia has pledged to reduce its carbon-emission intensity by a maximum of 40 % (2005 level) by the year 2020. Therefore, the implementation of RE technologies in this country is significantly aided by RE projects, research and development activities, technologies, energy policies, and future direction. This review concludes that solar, wind, hydro, and biomass energy, as well as a hybrid of these, can effectively electrify rural areas.