In a landmark keynote address at the Energy Asia 2025 conference, Malaysian Prime Minister Datuk Seri Anwar Ibrahim articulated a powerful, ASEAN-centric vision for navigating the global energy transition. Amidst rising geopolitical friction and protectionism, he championed a “just, equitable, and pragmatic” path for Asia
One that balances urgent climate commitments with the imperative of economic growth and social equity. The Prime Minister unveiled a comprehensive three-pillar strategy focusing on a robust financial architecture, advanced grid modernization, and the strategic deployment of Carbon Capture and Storage (CCS) technology, positioning PETRONAS as a key driver in transforming CCS into a new economic engine for the region.
KUALA LUMPUR, Malaysia – As the world grapples with a fractured geopolitical landscape, the future of global energy is being redefined, and Asia has firmly placed itself at the epicentre of this transformation. In a hall filled with global industry leaders, Malaysian Prime Minister Datuk Seri Anwar Ibrahim delivered a defining speech at Energy Asia 2025, outlining a distinctly Asian approach to one of the most complex challenges of our time. He called for a strategic, realistic, and principled energy transition, rejecting a one-size-fits-all model in favour of a tailored pathway that acknowledges the unique economic and social fabric of the region.
The Prime Minister began by addressing the turbulent global context, noting that the foundations of international cooperation are under significant pressure. “The interconnectedness is under strain,” he stated, pointing to “a rising tide of protectionism, narrow nationalism,” and retaliatory tariffs that have “fueled uncertainty, including the predictability, reliability, and stability that global trade and economic systems once offered.” He argued that this fragility is most acutely felt in the energy and climate domains, where polarizing policies driven by strategic competition threaten to derail collaborative progress.
In a powerful rebuttal to Western-centric historical narratives, Prime Minister Anwar asserted Asia’s deep-rooted experience with globalization. “We take a very serious view of those who claim that globalization is only the contribution or the experience of Western civilization,” he declared. “We have countries from Makkah to Madina, to Malacca, to China, that actually participated and experienced globalization in real terms.” This historical perspective underpins his core message: Asia has the experience, the diplomatic clout, and the economic dynamism to forge its own path.
Central to this vision is the unshakeable principle of ASEAN Centrality. The Prime Minister emphasized that in this complex, multipolar world, ASEAN’s role as a unifying force is more critical than ever. “We hold fast to the belief that diplomacy prevails over autocracy, that healthy competition can coexist with mutually beneficial outcomes,” he affirmed. He pointed to the successful 46th ASEAN Summit in Kuala Lumpur, where all ten member states reaffirmed their commitment to inclusive progress through the Kuala Lumpur Declaration of ASEAN 2045, and the inaugural ASEAN-GCC-China Summit as landmark events that have built crucial trust and fostered deeper regional integration.
This diplomatic cohesion provides the foundation for tackling the region’s immense energy dilemma. Asia, while accounting for a staggering 50% of global energy consumption and 60% of global emissions, is also demonstrating resilient climate ambition. Eight out of ten Southeast Asian nations have set net-zero targets, and at COP28, ASEAN member states pledged to help triple global renewable energy capacity to 11,000 gigawatts by 2030. Yet, the Prime Minister candidly acknowledged the central challenge: “How do we deliver a just and equitable energy transition for Asia, which will almost certainly require a significant increase in investments across a diverse range of energy productions?”
To answer this, he laid out a pragmatic, three-pillar strategy designed to be both ambitious and achievable.
First and foremost is the imperative to “determine and articulate a clear and coherent financial architecture” that can inspire investor confidence. The Prime Minister highlighted a jarring statistic: in 2023, Asia attracted a mere 2% of global clean energy spending. He described this as a “stark contrast for a region endowed with immense potential in renewable energy,” citing wind power in Vietnam, hydropower in Laos, solar in Malaysia, and geothermal in Indonesia. To close this gap, Malaysia is implementing proactive policies like the Corporate Renewable Energy Supply Scheme (CRESS), which allows companies to procure clean energy via the national grid, and incentivizing green investments through mechanisms such as the Green Technology Financing Scheme. The goal is to create a predictable and attractive policy environment that mobilizes the vast capital flows needed for the transition.
The second critical pillar is the comprehensive upgrade of electricity grids and the enhancement of regional interconnectivity. “This push for interconnectivity goes beyond trade or diplomacy,” Anwar stated. “It extends into energy, the very lifeblood of our modern economies.” He announced that Malaysia has committed a substantial 43 billion ringgit to upgrade its national grid infrastructure. This modernization is not merely about replacing old hardware; it involves incorporating advanced technologies like Artificial Intelligence (AI) and battery energy storage systems (BESS) to build greater resilience, flexibility, and efficiency for the future. On a regional scale, these efforts are amplified by the acceleration of the ASEAN Power Grid (APG) initiative, which aims to create a truly integrated regional power market, enhancing energy security and facilitating the cross-border trade of clean energy.
The third, and perhaps most pragmatic, pillar of the strategy involves improving efficiency within existing energy systems while strategically embracing new technologies to manage emissions. The Prime Minister was unequivocal that the path to Net Zero must be realistic, acknowledging that fossil fuels “still account for nearly 80% of global supply.” He argued that a balanced approach is essential, where renewable energy is complemented by the decarbonization of oil and gas operations.
Here, Carbon Capture and Storage (CCS) emerges as a vital technology. Malaysia is moving decisively to become a regional leader in this sector. Earlier this year, the nation passed the Carbon Capture and Storage Bill 2025, providing a robust regulatory foundation for this nascent industry. National energy champion PETRONAS, which the Prime Minister referred to as a “pillar” of the nation’s industry, is leading the charge with ambitious plans to develop three major CCS hubs in its offshore waters. These hubs will serve not only the oil and gas sector but also other hard-to-abate industries.
This initiative is a testament to global collaboration, involving more than ten international partners and global energy firms, including giants from Korea, France, and Italy, as well as TotalEnergies and Shell. Furthermore, PETRONAS is actively working with INEOS, Mitsubishi, and JAPEX to explore the transportation and storage of CO₂ from Japan to Malaysia. “This positions CCS not only as a vital decarbonization tool,” Anwar explained, “but also as a promising new revenue stream for the region.”
Underpinning this entire strategy is a deep-seated commitment to social justice. The Prime Minister passionately argued that the energy transition must be anchored in equity. In one of the most powerful moments of his address, he warned that “decarbonization efforts that ignore the needs of the poor and vulnerable risk deepening inequality.” He stressed that ensuring universal access to affordable, reliable energy is not merely a moral issue but “a foundational prerequisite for a just energy transition.” For Asia, where energy security remains inextricably linked to economic progress and lifting living standards, this principle is non-negotiable.
In his concluding remarks, Prime Minister Anwar Ibrahim issued a call to action to the delegates of Energy Asia 2025, looking to them for the “practical solutions and pragmatic initiatives” needed to turn this vision into reality. His address was more than a policy speech; it was a declaration that Malaysia and ASEAN are ready to lead, shaping an energy future that is not dictated by others but is defined by the region’s own needs, values, and pragmatic wisdom.
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