The excessive usage of fossil fuels in Malaysia is increasing yearly to meet the increasing domestic demands. However, this will impact the environment as fossil fuels will emit hazardous gases into the atmosphere. The development of marine energy in Malaysia is still in early periods compared with China, the U.K, and America. Notably, the impact of marine energy extraction on shallow water regions is not yet fully understood, such as the changes in the topography, the effect on marine life, and the cost of development and maintenance for tidal stream energy. This paper is focused on the social and ecological impact of potential marine energy development in Malaysia. Significantly, this study relies on published data to analyse and identify potential sites for harnessing tidal stream energy. Numerical calculation shows that the coastal region receives higher available energy compared to the deep sea. Three sites are found to be the best location for tidal energy exploration in Malaysia, namely Pangkor Island, Port Klang, and the Malacca coastline. From these three sites, the available energy per year for Pangkor Island is 193.668 MWh, while for Port Klang and Malacca coastline are at 241.66 MWh, and 433 MWh respectively. Apart from the economical aspect, the social aspect of tidal energy exploration is also examined. The purpose of the Renewable Energy Act 2011 and Electricity Supply Act 1990 is to ensure proper legislation for the implementation of marine renewable energy in Malaysia, specifically regarding zones of the ocean, licensing, and installation requirements.