Fadillah: Malaysia urges Asean unity for fair, inclusive energy transition

The Star

26-05-2025

KUALA LUMPUR: Malaysia, as Asean Chair for 2025, has called on member states to step up regional cooperation to drive a fair, secure and inclusive energy transition, in line with climate goals and the region's growing energy demand.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the region's energy future must be grounded in unity, practical frameworks and mutual benefits.
"As Chair of Asean in 2025, Malaysia is deeply committed to promoting dialogue, building consensus and advancing regional frameworks that will power a cleaner, more secure and more inclusive energy future," he said.
He said this in his keynote address at the Energy Transition Meeting in Asean: Fostering Regional Cooperation organised by MyDigital here on Monday (May 26).
Fadillah, also the Energy Transition and Water Transformation Minister, said Asean's energy demand has been growing faster than the global average, at three per cent annually, and is projected to rise by more than 60% by 2040, presenting both opportunities and challenges.
"This growth, while reflective of our economic dynamism, presents us with a pressing dilemma: how do we continue powering our progress while safeguarding environmental sustainability and ensuring affordability for all?
"The answer lies in a managed, inclusive and well-coordinated energy transition, one that reflects the diversity of Asean while advancing a common vision," he said.
He highlighted Asean's progress under the Asean Plan of Action for Energy Cooperation (APAEC) Phase II, noting that renewable energy now makes up 34% of installed electricity capacity, though its share in total primary energy supply remains at 16%.
"Vietnam has rapidly expanded its solar capacity by more than 20GW since 2019; Indonesia is anchoring a Just Energy Transition Partnership to transition to cleaner energy sources with at least USD20bil of support; (and) Thailand has adopted a Bio-Circular-Green Economy model to align sustainability with productivity," he said.
He also reaffirmed Malaysia's target of 70% renewables in installed capacity by 2050 under the National Energy Transition Roadmap (NETR).
Fadillah said regional integration was crucial, especially through mechanisms like the Asean Power Grid (APG), which aims to unlock cross-border power trade, leveraging the region's uneven distribution of renewable resources.
"The Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) is a prime example of how multilateral electricity trade is possible, allowing countries to work together to deliver renewable electricity across borders.
"From a national perspective, Malaysia commenced its first cross-border green electricity trade with Singapore through ENEGEM (Energy Exchange Malaysia). In just 148 days, over 107 TWh of green electricity generated from solar and hydro has been successfully delivered across the Causeway to Singapore," he added.
He stressed the need to harmonise green attributes such as Renewable Energy Certificates (RECs) across the region to boost investor confidence and prevent double-counting.
"Malaysia strongly supports an Asean-wide framework for green attributes that aligns with international best practices," he said, adding that this will be one of the priorities under Malaysia's Asean Chairmanship.
Fadillah said Malaysia would work through existing Asean platforms and newer partnerships like the Asean-Gulf Cooperation Council and Asean-China dialogues, noting that the Gulf states bring substantial expertise in utility-scale renewables while China offers technology and financing.
"Asean must negotiate from a position of unity. A coordinated regional stance enhances our bargaining power, attracts large-scale investments and sends a strong signal that Asean is open for green business," he said. – Bernama