BNM Governor Highlights Renewable Energy as Key to ASEAN’s Economic Resilience

Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour has underscored the critical role of renewable energy in ensuring ASEAN’s economic resilience amid global uncertainties. Speaking at the China Conference: Southeast Asia 2025, he emphasized that advancing sustainable finance and transitioning to clean energy are essential for strengthening regional supply chains and mitigating climate risks.

Abdul Rasheed highlighted that ASEAN remains one of the most climate-vulnerable regions, accounting for over 50% of global economic losses from disasters. He stressed the urgent need to mobilize financing for climate adaptation and decarbonization efforts to safeguard economic stability.

“In terms of the funding gap, ASEAN faces an annual shortfall of about US$100 billion. However, the ASEAN+3 Green Bond market grew by 30% in 2023, while the ASEAN Catalytic Green Finance Facility has mobilized around US$1 billion for climate-supporting infrastructure,” he said.

He further emphasized that ASEAN must prioritize investment in infrastructure capable of withstanding climate shocks. “Floods alone could cost ASEAN economies more than US$20 billion,” he noted.

Addressing the clean energy transition, Abdul Rasheed stressed the need for ASEAN to achieve a 50% renewable energy share in its total capacity by 2040. He pointed to the ASEAN Power Grid project as a critical initiative to enhance cross-border energy trade and ensure regional energy security.

“To secure a low-carbon future, ASEAN must prioritize the success of the ASEAN Power Grid project, which will expand cross-border energy trade and support the transition to clean energy,” he said.

He also reaffirmed BNM’s commitment to sustainable finance, noting that regional central banks are collaborating on initiatives such as the ASEAN Taxonomy for Sustainable Finance to drive investment in green energy projects.

As ASEAN nations work to build a resilient and sustainable economy, Abdul Rasheed emphasized that integrating renewable energy into regional strategies will be key to securing long-term economic stability and growth.