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ASEAN must seize the moment to define its own sustainability trajectory or risk falling behind the rest of the world, Minister of Investment, Trade and Industry Tengku Zafrul Tengku Abdul Aziz said in a keynote address at the Economic & Leadership Forum 2025.
Speaking to students, policymakers and business leaders gathered at Sunway University on Saturday morning, Tengku Zafrul issued a clarion call for stronger alignment between ASEAN policy, business strategy and climate ambition. He urged young leaders in particular to ask themselves: “What role will I play in writing ASEAN’s sustainability blueprint for the next decade?”
“The theme of this year’s forum – ‘ASEAN, Business, Policy: What’s the Sustainability Blueprint?’ – could not be more timely,” he said. “As Malaysia takes on the ASEAN Chairmanship, we have chosen Inclusivity and Sustainability as our guiding principles. These are not abstract goals. They’re about ensuring shared prosperity and passing on a liveable planet.”
Tengku Zafrul warned that climate change is no longer a distant crisis. “Typhoon Yagi, which killed and displaced thousands across five ASEAN countries, was a sobering reminder of our vulnerability. Crops are wilting, forests are burning, energy demand is rising, and communities are struggling.”
He said the region’s future depends on what he described as a “triple nexus” of coordinated forces: ASEAN collaboration, business buy-in, and policy leadership. “Sustainability is not a nice-to-have. It is a condition for survival and prosperity.”
He noted ASEAN’s impressive progress in some areas – such as the 97 per cent implementation rate of the ASEAN Economic Community Blueprint 2025 and ongoing cooperation under the ASEAN Ministerial Meeting on the Environment. But he added that success now depends on pace, credibility and coherence across the public and private sectors.
Highlighting several forward-looking proposals, Tengku Zafrul pointed to the ASEAN Common Carbon Market Initiative and the ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC) as encouraging signs that the region is taking the transition seriously.
From the policy side, he reiterated Malaysia’s commitment to leading ASEAN’s sustainability agenda through its National Climate Change Policy 2.0, a forthcoming Climate Change Bill, and a suite of economic frameworks including the New Industrial Master Plan 2030, ESG guidelines for industry, and the National Energy Transition Roadmap.
“Malaysia’s strategy integrates sustainability across our entire portfolio – investment, trade and industry – not in silos,” he said. “We want to position ASEAN as a global hub for green investment and technology.”
Tengku Zafrul also warned of the risks of complacency. “The ESG landscape is complex. Regulatory frameworks lag behind innovation. Greenwashing carries both reputational and financial penalties. But we must ask: will ASEAN define the rules – or become late adopters?”
With ASEAN projected to be the world’s fourth-largest economy by 2030, and global climate leadership faltering, he argued that the region has both an opportunity and a responsibility to lead.
“Youth is ASEAN’s greatest strategic advantage. If we align our people, businesses and policies around a low-carbon future, we can become the benchmark for sustainable growth in the Global South,” he said.
Tengku Zafrul added by reminding the audience that sustainability is not just the job of governments and CEOs, but of future leaders sitting in the room. “When you graduate, you’ll enter a world where profit alone is no longer enough. Investors will ask about your impact. Voters will judge on long-term vision. Customers will demand action.”
“Engage in these discussions. Challenge assumptions – including mine. Because the blueprint for ASEAN’s sustainable future is being shaped not just in public offices, but in forums like this.”
He closed with a firm commitment: “Malaysia will never compromise on our sovereignty or economic red lines. Nor should we compromise on the future of our planet. Let ASEAN 2025 be remembered as the moment ambition became action – and Malaysia helped lead the way.” - August 16, 2025
