Malaysia's Prime Minister Anwar calls for stronger partnerships to drive ASEAN energy transition

"A transition that is technologically brilliant but socially devastating is no transition at all; it is an injustice," he said, stressing that energy, digital and integration efforts must put people first, especially poor and marginalised communities, rather than deepen existing inequalities.

Malaysia and ASEAN will need to build stronger partnerships across governments, industry, finance, and technology if the region is to deliver a successful energy transition, Prime Minister of Malaysia Anwar Ibrahim recently said.

Speaking at the GBA-ASEAN Conference on Energy Transition and Integration on 29 July (Thursday), PM Anwar said the transition to cleaner energy is no longer only an environmental ambition. It has become a matter of energy security, economic resilience and regional stability.

Against a backdrop of geopolitical conflict and disruption to global energy supply chains, he said countries could not afford to remain overly dependent on finite fossil fuels.

"The transition towards clean, renewable energy sources is therefore not just an ecological preference; it is a core national security imperative," he said.

But he was clear that the transition will not happen through government action alone. Building solar farms, modernising power grids, expanding battery storage, and preparing workers for new industries will require significant and sustained investment.

"Achieving the energy transition at scale will require unprecedented collaboration among the public sector, private investors, and project developers," he said.

Malaysia, he noted, has experience in mobilising sustainable finance. The country launched its first green sukuk in 2017, linking Islamic finance principles with investments in environmentally sustainable projects. This approach, he added, reflects the importance of pairing financial innovation with long-term social and environmental responsibility.

The Prime Minister also pointed to opportunities for closer engagement with China’s Greater Bay Area (GBA), which brings together strengths in international finance, technology and advanced manufacturing. He said these capabilities could help Malaysia and ASEAN speed up renewable-energy development and strengthen regional power systems.

At the same time, he stressed that such cooperation should be pursued through ASEAN-led platforms, particularly the ASEAN Power Grid.

He highlighted the potential of cross-border electricity links involving Vietnam, Malaysia, Singapore, Laos, Thailand, Sarawak, Sabah, Kalimantan, and, potentially, the southern Philippines. Greater regional interconnection, he said, could help ASEAN share cleaner power more effectively and build a more secure energy future together.

While solar and wind remain central to the region’s transition, PM Anwar said ASEAN should also give due consideration to nuclear power. He noted that the region has regulatory experience and technical expertise that could support progress towards the ASEAN Plan of Action for Energy Cooperation.

For Malaysia, the National Energy Transition Roadmap continues to guide the country’s approach. Its priorities are to ensure stable, affordable and reliable energy; support economic growth; and reduce emissions while protecting natural ecosystems.

On that note, he shared that Malaysia has set targets for renewable energy to account for 31% of installed capacity by 2025, 40% by 2035 and 70% by 2050. The government has also committed to no new coal plants and to gradually retire existing coal capacity, with natural gas continuing to play a stabilising role in the near term.

However, the PM highlighted that the transition must not be measured only by technological progress or investment figures. It must also improve lives and avoid worsening existing inequalities.

"A transition that is technologically brilliant but socially devastating is not a transition; it is an injustice."

He added: "At the end of the day, energy transition and integration, or digital transformation is about the people. Hence, we cannot overstress the imperative of prioritising the poor and the marginalised in these consequential ventures or else continue to perpetuate the gross social inequities."

Therefore, he pointed out, the Global Bay Area represents a "unique combination of global leaders in international finance, cutting-edge technology, and advanced manufacturing capability," acknowledging its recognition as the World Intellectual Property Organisation’s top Global Innovation Cluster, ranking ahead of technology hubs such as San Francisco, Tokyo, and Seoul.

"With its 86mn residents, an integrated and dynamic GBA acts as an indispensable partner that will profoundly benefit us here in Malaysia and all of ASEAN."

He concluded with a call for everyone: "The decisions we make in these critical years will echo for decades.

"Let us be remembered as the architects of a green golden age, an era where the economy thrived, the environment healed, and our societies became more compassionate, just, and unified."

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Lead image / PM Anwar Facebook