PM Anwar: Energy Transition Must Be Inclusive, As Southeast Asia Attracts Only 2% Of Global Clean Investment

Anwar emphasised the need for a fair and inclusive energy transition that doesn’t abandon traditional energy sources too quickly, noting that fossil fuels still account for nearly 80% of the global energy supply.

PETRONAS

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Energy industry leaders have called for urgent collaborative action to accelerate Asia’s transition to net-zero emissions at a major conference in Kuala Lumpur, warning of a “polycrisis” of simultaneous global challenges.

The Energy Asia conference, which opened on Monday (16 June), has brought together representatives from 38 industries across more than 60 countries.

Participants discuss strategies for the region’s energy transformation under the theme “Delivering Asia’s Energy Transition.”

Prime Minister Datuk Seri Anwar Ibrahim officiated the three-day event at the Kuala Lumpur Convention Centre, hosted by state oil company PETRONAS and knowledge partner CERAWeek by S&P Global.

PM Calls For Fair, Inclusive Energy Transition Amid Funding Gaps

Anwar said the task is necessary as fossil fuels still account for nearly 80 per cent of the global energy supply.

It would be unrealistic to assume that we can simply abandon this traditional dependence without first being given the opportunity to grow with confidence and meet the demands of new centres and emerging technologies.

Anwar, who is also the Finance Minister, emphasised that the energy transition must be fair and inclusive, warning that decarbonisation efforts that overlook the poor and marginalised could worsen inequality, while stressing the need for universal access to affordable energy as fundamental to energy justice.

He highlighted that Southeast Asia attracted only 2% of global clean energy spending in 2023 despite its renewable potential, calling for a clear financial architecture and a balanced approach that combines renewable energy with emissions-abated oil and gas to ensure affordable energy access during the region’s path to net zero.

Anwar delivering the Keynote Address at the Energy Asia 2025. (Pix: Petronas)

AI Driving Massive Energy Demand

PETRONAS President and Group CEO Tengku Tan Sri Muhammad Taufik Tengku Aziz warned that the world faces a “polycrisis” of simultaneous challenges, including geopolitical conflicts and surging energy demand from artificial intelligence.

He noted that electricity demand from data centres alone is expected to more than double from 415 terawatt hours in 2024 to 945 terawatt hours by 2030.

Now, we stand at the threshold of what some might call the fifth industrial revolution, as AI is fast becoming an indispensable foundational technology across sectors.

Tengku Muhammad Taufik speaking at the Energy Asia conference. (Pix: Petronas)

Despite the Asia-Pacific region being home to 60% of the world’s population, it currently accounts for only 40% of global energy use.

However, this is expected to rise to 50% of global demand by 2050, requiring USD88.7 trillion in energy investment.

Tengku Muhammad Taufik emphasised that energy security and climate action should be viewed as complementary rather than competing priorities.

At Energy Asia, we now enjoy and benefit from the participation of almost 3,000
delegates from not just the oil, gas and energy industry, but also from power and utilities, technology and logistics, clean tech and renewables as well as financial and professional service providers – all coming together towards delivering a common purpose.

CEO Forum Charts Collaboration Roadmap

A central highlight was the inaugural Energy Asia Global Leadership Executive Forum, which brought together over 30 global CEOs from the oil and gas, energy, renewables, power, utility, technology, and finance sectors.

The closed-door dialogue outlined four key areas for collaboration:

Sharing best practices for creating resilient energy systems while adapting strategies within each organisation’s context
Improving project bankability and building investor confidence in financing energy transition projects
Reducing emissions while delivering positive social impact and effectively communicating sustainability efforts
Advancing innovation through shared expertise and accelerating decarbonisation within business environments

Global Expertise On Display

The conference features more than 180 globally renowned speakers, including the Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Haitham Al Ghais, TotalEnergies Chairman and CEO Patrick Pouyanné, and Meg O’Neill, CEO of Woodside Energy.

Through more than 50 strategic dialogues spanning seven sub-themes, the conference will examine collaborative efforts across Asian nations to enhance energy security, promote the adoption of renewable energy, deploy decarbonization solutions, and facilitate technology transfer.

The event also features an Energy Park showcasing transformational technology platforms, as well as the inaugural Energy Asia Awards, which recognise leadership in energy transition, and the Future Energy Leaders programme for emerging talent.

Present were Deputy Prime Minister Datuk Seri Fadillah Yusof, Finance Minister II Datuk Seri Amir Hamzah Azizan and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar.