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ASEAN nations are intensifying efforts to establish a fully connected regional energy network, with member states agreeing to fast-track the ASEAN Power Grid initiative amid rising concerns over long-term energy security, sustainability and cross-border supply resilience.
Deputy Prime Minister II Datuk Seri Fadillah Yusof said regional leaders had reached a consensus during the latest ASEAN Ministers on Energy Meeting to accelerate implementation of the ASEAN Power Grid (APG), alongside broader cooperation involving the Trans-ASEAN Gas Pipeline and energy-sharing mechanisms among member states.
Fadillah, who also serves as Energy Transition and Water Transformation Minister, said ASEAN hoped to achieve tangible progress before the next ASEAN Leaders’ Meeting scheduled for November.
“Hopefully, by the next ASEAN Leaders’ Meeting (in November), we will be able to finalise or realise particular objectives,” he told reporters after delivering a keynote address at the AI Leadership Summit 2026 organised by Microsoft Malaysia in Kuala Lumpur on Thursday.
The renewed push for regional connectivity comes as Southeast Asian economies seek greater insulation from global energy volatility while expanding renewable energy adoption and reducing dependence on traditional fossil fuel systems.
Fadillah said financial backing for ASEAN’s regional energy ambitions remained stable, with multilateral institutions continuing to honour existing commitments while international and private-sector interest — including from the European Union — continued to increase.
At the domestic level, he revealed that Tenaga Nasional Berhad is expected to invest RM40 billion over the next two years to modernise Malaysia’s electricity grid infrastructure, including the rollout of AI-enabled smart grid systems designed to improve efficiency, stability and energy management.
As Malaysia accelerates its renewable energy agenda, the government has also launched the Large Scale Solar 5 (LSS5) programme with a targeted generation capacity of 2,000 megawatts expected to commence operations by 2027.
Fadillah said preparations were already underway for future tenders under the LSS6 programme, while authorities were also exploring the possibility of introducing LSS7 to further expand solar generation capacity nationwide.
He added that Battery Energy Storage Systems (BESS) would play a critical role in ensuring grid reliability as Malaysia increases the share of renewable energy within the national power mix.
Alongside energy reform, Fadillah used the summit to call for a broader transformation in Malaysia’s technological ambitions, warning that the country must move beyond passive adoption of emerging technologies if it hopes to remain globally competitive in the AI era.
“Because technology guided by integrity can become one of the greatest forces for national resilience, shared prosperity, and social good,” he said.
He stressed that Malaysia’s future role in the global AI economy would depend on the development of environmentally sustainable AI infrastructure, wider public access to AI capabilities and deeper integration of AI systems across industries.
The deputy prime minister also urged Malaysians to reposition themselves as creators and innovators rather than merely consumers of technology.
“We must become an AI-enabled nation. We must help shape it through bold investments, responsible innovation, skilled talent, ethical leadership, and a shared commitment across government, industry, academia, and society,” he added. - May 21, 2026
