MALAYSIA’S Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Fadillah Yusof, has called for accelerated regional cooperation and investment as ASEAN braces for a projected 2.6-fold increase in energy demand by 2050.
Speaking at the ASEAN Energy Business Forum 2025 in Kuala Lumpur, Fadillah said the recently published 8th ASEAN Energy Outlook (AEO8) must serve as a catalyst for member states to translate shared ambitions into urgent and concrete action.
“ASEAN is one of the fastest-growing regions in the world. Our population is expanding, our economies are thriving, and with that comes a surge in energy demand,” he said. “The Outlook is a call to action for all of us to work together toward a secure, affordable, and sustainable energy future.”
He warned that, without decisive intervention, fossil fuels will continue to dominate the region’s energy mix, driving a corresponding spike in emissions.
However, the Carbon Neutrality Scenario within the AEO8 presents a more optimistic path.
“Malaysia has committed to achieve net zero by 2050 and other ASEAN Member States have adopted their own pathways, but with a similar vision in mind,” he said, noting that implementing national policies could reduce fossil fuel reliance by 14 per cent by mid-century.
To meet this challenge, Fadillah urged ASEAN nations to expand their renewable energy capacities, including solar, wind, hydro, biomass, and emerging technologies such as green hydrogen.
“We must go further. We must invest, innovate, and integrate renewables into our grids and industries,” he said.
In tandem, he stressed the untapped potential of energy efficiency, calling for policy and infrastructural reforms to reduce pressure on energy supply while maintaining economic growth. Measures include modernising transport systems, upgrading buildings, and deploying smart technologies.
“Empowering consumers with smart technologies and incentives that can benefit both users and markets is essential,” he said.
Fadillah underscored the importance of regional infrastructure initiatives such as the ASEAN Power Grid (APG) and the Trans-ASEAN Gas Pipeline (TAGP) in achieving energy security and sustainability.
He confirmed that ASEAN is renewing its commitment to the APG through a new Memorandum of Understanding (MoU), supported by the ASEAN Centre for Energy (ACE), which will soon assume the role of APG Secretariat.
“This new MoU will allow ASEAN to work closer to strengthen regulatory frameworks, harmonise standards, and build trust among the Member States,” he said.
He also stressed that financing remains one of the greatest hurdles to ASEAN’s energy transition.
“The energy transition requires billions of dollars in investment in generation, transmission, innovation, and human capital,” Fadillah said, calling for stronger public-private partnerships, access to green finance and climate funds, and greater investor confidence through stable, transparent policies.
“ASEAN must become a destination for clean energy investment. Financing this transition will be about the confidence in our collective direction.”
Finally, he reaffirmed the crucial role of strong governance, coordinated long-term planning and data-led decision-making in realising the region’s clean energy ambitions.
“The role of the ASEAN Energy Outlook is clear – to support ASEAN energy ministers in taking regional cooperation as a part of our national agenda,” he said, adding that the ninth edition of the Outlook is expected next year, with Malaysia encouraging partners to support its development.
“We need to strive for more ambitious achievements together,” he added. - October 15, 2025
