The growth of the world's population has increased energy demand. Malaysia, as a developing country, also requires significant energy to drive economic development and address population demand. Malaysian conventional power generation system is highly dependent on natural gas, coal, and oil power systems that have had significant environmental impacts. This paper explores the energy status in Malaysia to highlight the advantages of fuel cells as an advanced alternative energy source. The discussion on energy status in Malaysia involves population situation, energy demand, energy sources, and energy policies. Then, the ability and type of fuel cells to provide this advanced alternative energy source in Malaysia are described. The prospects for introducing portable fuel cell devices and residential applications have been comprehensively described as the most relevant application for the residential sector to implement this technology in Malaysia. Highlights A comprehensive review of fuel cell systems as a source of renewable energy for the residence sector in Malaysia is presented. The introduction of fuel cell-based portable devices and residential applications are the most relevant applications for the residence sector in Malaysia. The prospects for the introduction of fuel cells are discussed, including costs and maintenance, the plan and strategy, and the availability of a research center in Malaysia.