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ASEAN could unlock an additional US$300 billion in annual revenue from green economic activities and generate up to US$1.5 trillion in new value by 2030 through strengthened green investment and cross-border cooperation in energy grids, carbon markets, and clean energy incentives.
Delivering the keynote address at the ASEAN Business Forum 2025 in Kuala Lumpur, Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia’s green investment strategy had already borne fruit in 2024, with nearly 1,000 approved projects amounting to RM20.8 billion in investment and the creation of thousands of future-ready jobs.
“We are operationalising key frameworks and regulatory provisions to realise the nation’s green aspirations,” he said. “This includes the ASEAN Taxonomy for Sustainable Finance, the Sustainable Investment Guidelines, and the Greening Value Chain Playbook.”
He added ASEAN is pursuing a broader regional strategy to achieve carbon neutrality. Key initiatives include the alignment of carbon markets and measurement standards, adoption of carbon capture, utilisation and storage (CCS/CCUS) technologies, and the creation of a just transition framework to support affected workers and communities.
“These measures are enabling the corporate sector to transition towards sustainable and climate-friendly growth,” Tengku Zafrul said.
Among ASEAN’s most transformative undertakings is the ASEAN Power Grid (APG), which currently involves 18 cross-border power projects in the pipeline and more than 60 identified renewable energy sites.
“APG is shaping up to be ASEAN’s flagship initiative in sustainable energy transition,” he remarked. Citing recent studies, Tengku Zafrul said the APG could contribute as much as US\$3 trillion to regional GDP by 2050 and create approximately 1.45 million jobs.
However, he emphasised that the grid’s success will depend on strategic financing from multilateral lenders such as the Asian Development Bank (ADB) and the World Bank, while preserving ASEAN’s centrality and regional autonomy.
In addition to green initiatives, Tengku Zafrul pointed to ASEAN’s digital transformation, highlighting the ASEAN Digital Economy Framework Agreement (DEFA), which is in the final stages of negotiation.
The agreement aims to boost the region’s digital economy to US$2 trillion by 2030 by facilitating cross-border integration of e-commerce, fintech, digital finance, and artificial intelligence (AI) solutions.
In 2024 alone, ASEAN’s digital sector tripled its profits to US$11 billion and attracted over US$30 billion in new investment in data centre infrastructure.
“This surge is fuelled by a youthful population, rapid urbanisation and robust public-private collaboration,” Tengku Zafrul said. “For example, harnessing the potential of ASEAN’s 334 million women — roughly half of the region’s population — could add as much as US$2.3 trillion to regional GDP.” - May 29. 2025
