Kuala Lumpur: ASEAN could generate an additional US$300 billion annually in green revenues and unlock up to US$1.5 trillion in new value by 2030 through advancing green investments and cross-border collaboration in regional power grids, carbon markets, and clean energy incentives. This was highlighted by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz during the ASEAN Business Forum 2025.
According to BERNAMA News Agency, Malaysia’s green investment strategy has already seen close to 1,000 approved projects in 2024, injecting RM20.8 billion into the economy and creating numerous future-ready jobs. Tengku Zafrul emphasized the importance of key frameworks and regulatory provisions, such as the ASEAN Taxonomy for Sustainable Finance, Sustainable Investment Guidelines, and the Greening Value Chain Playbook, to realize the region’s green ambitions.
His speech, delivered by Malaysian Investment Development Authority (MIDA) CEO Sikh Shamsul Ibrahim Sikh Abdul Majid, also highlighted ASEAN’s strategy for carbon neutrality. This includes harmonizing carbon markets and measurement standards, advancing carbon capture, utilization, and storage technologies, and creating a just transition framework for workers and communities. These initiatives aim to facilitate the corporate sector’s shift towards sustainable, climate-friendly growth.
A significant aspect of these green initiatives is the ASEAN power grid (APG), which includes 18 cross-border power projects and over 60 renewable energy sites identified as part of ASEAN’s sustainable energy transition. Studies suggest that the APG could contribute up to US$3 trillion in GDP value by 2050 and create 1.45 million jobs regionally. The success of the APG will depend on strategic funding from banks like the Asian Development Bank and the World Bank, ensuring ASEAN maintains centrality and regional autonomy.
Furthermore, Tengku Zafrul discussed the ASEAN Digital Economy Framework Agreement (DEFA), which is currently in advanced negotiations. This agreement aims to double ASEAN’s digital economy to US$2 trillion by 2030, fostering connections in ecommerce, fintech, digital finance, and AI-enabled solutions across borders. In 2024, ASEAN’s digital sector profits tripled to US$11 billion, attracting over US$30 billion in new data center investments. This growth is driven by a youthful population, rapid urbanization, and strong public-private partnerships.
He also noted the potential economic impact of empowering ASEAN’s 334 million women, who represent roughly half of the population, potentially contributing an additional US$2.3 trillion to regional GDP.