Business-POWER | PETALING JAYA: Malaysia leads Asean transition towards low-carbon energy grid

PETALING JAYA: Malaysia is taking the lead in Asean’s ambitious transition towards a low-carbon, interconnected energy grid powered primarily by renewable energy sources.

Deputy Prime Minister Datuk Seri Fadillah Yusof emphasised the critical importance of transitioning to a low-carbon energy grid, describing it as both an environmental imperative and a strategic necessity.

“This transformation is essential for ensuring energy security and driving economic growth across the region,” he said, representing Prime Minister Datuk Seri Anwar Ibrahim, at the Asean Workshop on Sustainable Development 2025 at Sunway University today.

Fadillah highlighted Malaysia’s active participation in the Asean Green Future Project, a regional framework aimed at harmonising energy policies, tariffs, and regulations to enable seamless cross-border energy trade.

“This project, led by Sunway University under the United Nations Sustainable Development Solutions Network (SDSN), focuses on developing pathways for Asean nations to decarbonise their energy systems and unlock mutual economic benefits,” he said.

The deputy prime minister emphasised the need for strategic analysis and road-mapping to assess energy demands, identify renewable resource capacities, and address gaps in transmission infrastructure.

“This work is already ongoing right here at Sunway University, and I am closely following its progress. By addressing these critical areas, the project aims to lay a strong foundation for an integrated Asean energy grid,” he added.

Fadillah noted that one of the core objectives is capacity building in clean energy technologies across member states.

“This involves enhancing technical expertise and fostering innovation to ensure the successful implementation of low-carbon energy systems. Such advancements will not only reduce Asean’s reliance on fossil fuels but also position the region as an attractive destination for high-tech industries and green investments.”
Furthermore, he said, Malaysia’s leadership in this initiative reflects its commitment to achieving both environmental and economic goals. “A balanced approach to sustainability, which is integrating renewable energy sources like solar, wind and hydro, will be key to maintaining energy security and driving long-term regional growth.”
The economic benefits of this transformation are significant, Fadillah said.

“By decarbonising energy systems and promoting regional cooperation, Asean countries stand to attract global investors seeking sustainable and low-carbon projects. This, in turn, could create jobs, boost innovation, and strengthen the region’s position as a leader in the global green economy.”

As Asean progresses towards a shared vision of sustainability, Fadillah said, Malaysia’s proactive role in fostering collaboration and innovation underscores its determination to align regional energy systems with global decarbonisation targets.

“Through the Asean Green Future Project, the nation is paving the way for a greener, more economically resilient Asean,” he added.