Energy Asia 2025: Delivering Asia’s Energy Transition

The region could not afford to pursue idealism at the expense of energy security, nor can it delay its climate commitments.

Instead, a pragmatic and inclusive energy transition is critical.

This was the core message delivered by PETRONAS President and Group CEO, and Energy Asia Chairman, Tan Sri Tengku Muhammad Taufik, who stressed that ASEAN home to over 700 million people is at a critical crossroads.

With energy demand surging due to urbanisation, industrialisation, and rapid digitalisation, the region must adopt a deliberate, coordinated strategy to meet both developmental and environmental goals.

“In Malaysia alone, energy demand is projected to grow by 6.5 percent over the next few years

"The region continues to see economic expansion of 3–4 percent annually

"Meeting this demand must go hand-in-hand with our climate responsibilities,” said Tengku Taufik.

Despite the region’s abundance of natural resources like oil and multi-TCF gas reserves, Tengku Taufik emphasised that resource wealth alone is not enough.

Investment must now also flow into cleaner alternatives and carbon abatement solutions without undermining economic momentum.

“We cannot continue business as usual when climate risks from flooding to erosion threaten our way of life "A sustainable energy future must also be a secure one," he added.

A key feature of Energy Asia 2025 was its deliberate effort to include stakeholders beyond oil and gas from clean tech providers and utilities to financial institutions and policymakers.

He emphasised that the energy transition cannot occur in isolation, underscoring the importance of unprecedented cross-sector collaboration as a fundamental enabler of a low-carbon future.

As a proof point, Tengku Taufik highlighted a landmark cooperation involving Vietnam, Malaysia, and Singapore, where Vietnam’s offshore wind energy will be transmitted through Malaysia’s grid into Singapore.

He said this illustrates the kind of technical, financial, and policy coordination needed at scale.

As Chair of ASEAN in 2025, Malaysia is uniquely positioned to foster regional alignment on energy transition.

Tengku Taufik praised Prime Minister Datuk Seri Anwar Ibrahim’s leadership in galvanising cooperation across member states, despite differences in starting points and economic maturity.

“Every ASEAN country is pursuing its own version of the Fifth Industrial Revolution. Yet we share common goals — industrialisation, urbanisation, and climate resilience. The only way forward is inclusivity and shared infrastructure.”

He also pointed out that ASEAN, excluding China, only captures 15–20 percent of global clean energy investments a challenge rooted in uneven policy frameworks and limited incentives in emerging economies.

Amid what he called a “polycrisis” a convergence of geopolitical, economic, and environmental disruptions, PETRONAS remains committed to long-term investment and energy system transformation.

He added these decisions must go beyond short political cycles.

“We make capital decisions that serve customers, protect our stakeholders, and invest in the planet. This is a long game. Short-term KPIs don’t reflect the value of future-readiness.”

Through its clean energy subsidiary Gentari, PETRONAS is pursuing 20GW of renewable capacity, green hydrogen, and sustainable mobility solutions.

Tengku Taufik also addressed speculation around PETRONAS’ recent portfolio activities.

He clarified that instead of divesting assets, the company is strategically leveraging them to extend the lifespan of its reserves and to monetise fields that are more technically challenging to develop.

"Our JV with ENI and work with TotalEnergies isn’t divestment it’s positioning

"We are delivering what we call ‘advantaged barrels’, lower-cost, lower-emission production that sustains today’s needs while building for tomorrow.”, he said.

Despite fossil fuels still powering 70–80% of global energy systems, PETRONAS is working to deliver that energy more responsibly while laying the foundation for clean, resilient alternatives.

As the region stands at a historic inflection point, PETRONAS calls for realism and resolve.

The energy transition must not be viewed as sacrifice, but as a shared opportunity to build a future-ready, climate-conscious Asia through strategic investment, inclusive collaboration, and policy coherence.

Energy Asia 2025 is a premier thought leadership and business advocacy forum, championing Asia’s pivotal role in the global energy transition kicked off in Kuala Lumpur, Malaysia, on Monday.

The event gathered over 4,000 delegates and 180 global speakers from 60 countries and territories to discuss the region’s energy transition.