Economy

by AKMAR ANNUAR

MALAYSIA is calling for a just and pragmatic energy transition that balances climate goals with regional realities.

Addressing over 3,000 delegates at the opening of the Energy Asia 2025 conference at the Kuala Lumpur Convention Centre today, Prime Minister (PM) Datuk Seri Anwar Ibrahim said Asia — already responsible for half of global energy demand — must not be sidelined in climate negotiations and should be supported to chart its own path towards net zero.

“Energy demand in the Asia Pacific surged in 2024, accounting for 50% of global consumption. The region also contributes 60% of global emissions. Yet, even as growth accelerates, our commitment to climate action remains resolute,” he said.

The region’s energy transition, he said, must be anchored in equity — with universal access to reliable, affordable power considered “foundational” and not a luxury.

Upgrading Infrastructure and Unlocking Capital

Anwar confirmed that Tenaga Nasional Bhd (TNB) has committed RM43 billion to upgrading Malaysia’s national electricity grid, a move he said would incorporate artificial intelligence (AI) and battery energy storage systems to improve resilience and flexibility.

He also called for the acceleration of the ASEAN Power Grid (APG) initiative, including the establishment of a dedicated financing facility network to boost cross-border energy investments.

“This push for interconnectivity goes beyond trade or diplomacy; it extends into energy — the very lifeblood of modern economies,” he said.

South-East Asia attracted just 2% of global clean energy spending in 2023, despite the region’s immense renewable energy (RE) potential.

Malaysia is attempting to address this gap through schemes such as the Corporate RE Supply Scheme (CRESS) and the Green Technology Financing Scheme.

Anwar emphasised the need for a clear and coherent financial architecture to inspire investor confidence and mobilise capital flows, particularly into wind, solar, hydropower and geothermal energy across ASEAN.

Complementary Role for O&G

While reaffirming Malaysia’s commitment to the National Energy Transition Roadmap (NETR) launched in 2023, Anwar also stressed the continued relevance of traditional fuels in Asia’s transition strategy.

Emissions-abated oil and gas (O&G) must complement renewable sources to ensure affordability and stability, particularly for countries with limited energy access.

“This transition must be anchored in equity. Decarbonisation efforts that ignore the needs of the poor and vulnerable risk deepening inequality. Energy security must go beyond supply stability to include social justice and inclusive access,” he said.

He added that fossil fuels still account for nearly 80% of global energy supply, and it would be “ridiculous” to assume that Asia could abandon these resources abruptly without compromising development goals.

CCS as Regional Revenue Stream

A major part of Malaysia’s decarbonisation strategy now hinges on the growth of carbon capture and storage (CCS) technology.

Anwar announced that Malaysia has passed its Carbon Capture, Utilisation and Storage (CCUS) Bill earlier this year, giving legal footing to the sector.

Petroliam Nasional Bhd (Petronas) will lead the development of three CCS hubs in Malaysia’s offshore waters, involving over 10 international partners including TotalEnergies SE, Shell plc, Mitsubishi Motors Corp, Eneos Corp and JX Nippon.

Anwar highlighted an ongoing collaboration with Japan to transport and store carbon emissions from the Tokyo Bay area in Malaysian facilities — a move he said could position CCS as “a promising new revenue stream for the region”.

A Vision for ASEAN and Beyond

Framing the energy transition within a broader geopolitical context, Anwar spoke at length about global protectionism, disrupted supply chains and shifting power dynamics.

“We are witnessing polarising policy shifts driven by strategic competition, even as energy security remains out of reach for many.

“But here in Asia, we hold fast to the belief that diplomacy prevails over autocracy, and healthy competition can coexist with mutually beneficial outcomes,” he said.

He cited the recent 46th ASEAN Summit in Kuala Lumpur and the inaugural ASEAN-

Gulf Cooperation Council (GCC)-China Summit as proof of the region’s growing cohesion, and reaffirmed Malaysia’s commitment to chair ASEAN in 2025 with a focus on inclusive cooperation and integration.

It is essential to define and establish a financial architecture that builds investor confidence, facilitates the mobilisation of capital and addresses the specific needs of the region.

Malaysia’s approach must remain pragmatic, rooted in the lived realities of its people and not shaped by external prescriptions or ideals.

Held from June 16 to 18, Energy Asia 2025 brings together over 3,000 delegates and more than 180 global speakers to discuss the region’s transition priorities.

Hosted by Petronas with CeraWeek by S&P Global as knowledge partner, the event focuses on actionable solutions across seven sub-themes including climate, capital markets and innovation.

The event will also introduce new features such as the Energy Asia Awards and a closed-door Global Leadership Executive Forum to accelerate investment and collaboration.

The post PM calls for pragmatic approach to Asia’s energy transition appeared first on The Malaysian Reserve.

KUALA LUMPUR — Global interconnectedness is under strain due to rising uncertainties, eroding the predictability, reliability and stability of existing global trade and economic systems, said Prime Minister Datuk Seri Anwar Ibrahim (picture).

Speaking at the Energy Asia 2025 today, he said geopolitical tensions, retaliatory tariffs and disrupted supply chains have shaken the foundations of these systems, with the fragility most evident in the energy and climate sectors.

“Rather than fostering collaboration, we are witnessing polarising policy shifts driven by strategic competition, even as energy security remains out of reach for many,” he said in his keynote address at the Energy Asia 2025 opening ceremony here today.

Elaborating on the equitable energy transition for Asia, he said the region must determine and articulate a clear and coherent financial architecture that inspires investor confidence and mobilises greater capital flows into renewable energy projects.

“This is critical, given that in 2023, Southeast Asia attracted only two per cent of global clean energy spending, a stark contrast for a region endowed with immense potential in renewable energy,” he added.

Zooming in on Malaysia, Anwar said that Malaysia is working to address the gap in the renewable sector through policies such as the Corporate Renewable Energy Supply Scheme (CRESS), which allows companies to procure clean energy via the national grid under a third-party access model. 

“Efforts are also underway to incentivise green investment through mechanisms such as the Green Technology Financing Scheme, he added.

Touching on the critical pillar that advancing energy transition lies in upgrading electricity grids, Anwar affirmed that  ASEAN has taken a significant step by accelerating the ASEAN Power Grid (APG) initiative through an enhanced memorandum of agreement and the establishment of a dedicated APG financing facility network. 

“This will enhance cross-border funding flows and bring us closer to a truly integrated regional energy market,” he said.  — BERNAMA

The post PM Anwar: Global interconnectedness under strain amid rising geopolitical tensions appeared first on The Malaysian Reserve.