Malaysia

Malaysia needs RM2.4 trillion in climate, development investment over two decades - Minster

The government must mobilise RM2.4 trillion (US$570 million) by 2045 to meet its development and climate goals, warns Johari Abdul Ghani

Updated 1 year ago · Published on 14 Oct 2025 3:28PM

Malaysia needs RM2.4 trillion in climate, development investment over two decades - Minster
Innovative finance, strong policy frameworks and inclusive planning needed to avert escalating future costs - October 14, 2025

MALAYSIA will need an estimated USD570 billion (approximately RM2.4 trillion) in investment over the next 20 years to meet its national development and climate sustainability goals, according to Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

Speaking at the Kuala Lumpur Sustainability Summit, Johari said the required investment far surpasses ASEAN’s collective target of USD422 billion (RM1.78 trillion) by 2030, highlighting the scale of Malaysia’s climate and development ambitions.

“This will require innovative financial instruments, blended financing models, and, most importantly, strong policies to instil investor confidence for long-term capital deployment,” he said.

While acknowledging the daunting figures, Johari warned that the cost of inaction would be significantly higher in the long run.

“Even though the investment figure is large, if no immediate action is taken, the future costs will be much greater,” he said.

Johari, who is also Acting Minister of Natural Resources and Environmental Sustainability, noted that climate change is already having a visible impact across the region, threatening food security, energy prices, supply chains and public health.

He called for comprehensive and integrated planning to ensure that national development remains inclusive and resilient in the face of growing environmental risks.

“Achieving these goals will require collaboration among multiple stakeholders, including government agencies, businesses, financial institutions and local communities,” he said.

As a developing country, Malaysia could also learn from the past missteps of more advanced economies, Johari added.

“If climate change is not managed well with proper frameworks and organised governance, it will be difficult to address the consequences,” he said. “It could affect our economy or lead to floods. We must have mitigation actions in place.”

He emphasised the importance of transparency in sharing climate-related data to help developers and investors make informed decisions, particularly when planning new developments.

Asked whether climate sustainability would be raised with US President Donald Trump during the upcoming 47th ASEAN Summit, Johari said there were no plans for such a discussion, noting that the topic would more likely be addressed among developing nations. - October 14, 2025

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