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An intelligent energy management system (IEMS) is developed to improve fuel efficiency of an internal combustion engine vehicle. It helps determine the best approach to run the engine system through dynamically analysing various factors relating to vehicle. The energy balance technique is implemented and utilised. The simulation outcome of the IEMS is compared against that of a conventional system under the same driving factors. The results show that the IEMS reduces the fuel consumption around 5.6% for the tested conditions.