As the chair of Asean in 2025, Malaysia has chosen a theme that resonates deeply with the region’s aspirations: ‘Inclusivity and Sustainability’. This theme is not just symbolic. It is backed by a series of bold, strategic initiatives designed to turbocharge Asean’s transition to a low-carbon and resilient economy.
In an article by The Star newspaper, it opined that Bank Negara Malaysia (BNM) plays a key role in shaping the financial architecture to support this transformation. As Asean charts its path to becoming the world’s fourth largest economy, the Asean Power Grid (APG) Project is central for the region’s growth and energy future.
As countries gradually phase out coal, the APG will play a critical role in facilitating the efficient generation and flow of renewable energy within the region. Under Malaysia’s Asean Chairmanship, BNM is prioritising efforts to catalyse access to finance for a just and climate-resilient transition.
This includes facilitating funding for the APG, given the substantial investments needed to upgrade and modernise the infrastructure and advance multilateral power trade implementation, the article said.
Malaysia remains strongly committed to the APG vision and is actively executing actions towards realising it, starting with the tripartite partnership formed with Vietnam and Singapore in advancing transnational energy infrastructure.
The scale and complexity of the APG warrants new financing approaches. Public, private and philanthropic partnerships, backed by innovative funding structures such as Islamic and blended finance are needed to unlock the capital needed to power the projects forward.
This is a long-term, highly complex yet economically significant infrastructure project. We are heartened by the strong response from a range of risk capital providers and funders which underscores growing confidence in Asean and its energy transition agenda.
Read more here.
