PRIME MINISTER Datuk Seri Anwar Ibrahim has called for the establishment of a coherent regional financial framework in Asia to instil investor confidence and mobilise greater capital flows into renewable energy projects across the region.
Speaking at the opening keynote of the Energy Asia 2025 conference on Sunday morning, Anwar highlighted that Southeast Asia attracted only two per cent of global clean energy investment in 2023.
“A stark contrast for a region endowed with immense renewable energy potential – wind energy in Vietnam, hydropower in Laos, solar energy in Malaysia, and geothermal in Indonesia,” he said.
The three-day conference, held in the Malaysian capital from 16 to 18 June, serves as a critical platform for regional governments and energy stakeholders to assess progress and reinforce commitments towards achieving net-zero carbon emissions.
Under the theme ‘Delivering Asia’s Energy’, the event comes as Asia undergoes an economic transformation that requires a balance between sustainable growth and environmental stewardship, amid the shift from fossil fuels to renewable energy and the adoption of new green technologies.
“Energy demand in Asia-Pacific surged in 2024, accounting for 50 per cent of global consumption, and we are only just beginning to accelerate efforts to ensure energy sufficiency. This region also contributes 60 per cent of global carbon emissions,” Anwar said.
He emphasised that a key pillar in Malaysia’s energy transition lies in the upgrading of its national power grid.
“At the recent ASEAN Summit, we took a major step forward by accelerating the ASEAN Power Grid (APG) initiative through an enhanced memorandum of agreement and the establishment of a dedicated APG financing facility. This will boost cross-border fund flows and bring us closer to a truly integrated regional energy market.”
Malaysia’s national utility, Tenaga Nasional Berhad (TNB), has committed RM43 billion to modernise the country’s grid infrastructure, including the integration of artificial intelligence (AI) and battery energy storage systems.
Anwar further stated that while the clean energy transition must be prioritised, investments must also be channelled into improving the efficiency and reducing the emissions of existing energy systems, as fossil fuels still supply nearly 80 per cent of global energy.
“Ensuring universal access to affordable and reliable energy is not merely a moral imperative, it is the foundation of a just energy transition,” he said.
He cited data estimating that a total of USD88.7 trillion in energy investment will be required in Asia by 2050 in line with the region’s rapid economic expansion.
PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik Tengku Aziz echoed the Prime Minister’s sentiments, emphasising that continued investment is needed across both conventional and renewable energy systems.
“By 2050, the population in Asia Pacific is projected to reach 5.2 billion. To power our economies, drive AI adoption across all sectors, keep the lights on, and safeguard our communities, this region will account for 50 per cent of global energy demand by mid-century,” said Tengku Muhammad Taufik, who also serves as chairman of the Energy Asia conference.
He added that a dedicated platform must be built to consolidate Asia’s achievements and accelerate its progress as the epicentre of global energy demand growth. - June 16, 2025
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