As a developing country, Malaysia has always faced the problem of rural electrification in its islands. Rural islands cannot be connected to the grid as it is economically not feasible due to the low number of residents. The high greenhouse gas emission of the diesel generator is unfavorable to the residents. This study aims to assess hybrid system implementation in a remote community on Malawali island in Sabah, Malaysia, to provide the lowest price of electricity. Four scenarios, including diesel generator (DG) (A), PV/WT/Battery/DG (B), PV/Battery/DG (C), and PV/WT/Battery (D), are developed. A Techno-economic analysis is carried out to determine the most competitive system. Emissions are also observed to choose the optimum system. Results show that scenario B, with the net present cost (NPC) of 188,814$ and the cost of energy (COE) of 0.198$/kWh, is reliable in delivering the electricity required while having a reasonable cost relatively low emission. Sensitivity analysis is also carried out with different parameters to examine its effects on the system's sustainability throughout its lifetime.