KUALA LUMPUR: Economy Minister Rafizi Ramli said governments must adopt a holistic approach to policy and infrastructure to bolster renewable energy (RE) supply and ensure sustainable development.

He said that Malaysia plans to significantly ramp up its RE capacity over the next two to three years, paving the way for a more integrated regional approach within the ASEAN community.

"We need to establish comprehensive policies and robust infrastructure to support RE expansion.

"Our goal is to significantly increase our RE supply in the next few years, moving towards a cohesive regional strategy," Rafizi said.

The minister said this during a panel session at the Annual Meeting of the New Champions, themed "The Opportunity of Managing Energy Demand", organised by the World Economic Forum in China today.

He also said as Malaysia prepares to take over the chairmanship of ASEAN, it is set to champion a flagship project aimed at advancing integrated green growth across the region.

The initiative seeks to bridge the gap between RE capacities in different economies, with excess capacity in the north and higher energy demand in the south.

"Malaysia is committed to leading ASEAN towards integrated green growth. Our goal is to create a cohesive regional approach that facilitates the transition to sustainable energy, connecting through the peninsula to Singapore and Indonesia," Rafizi said.

Addressing the complexities of energy demand, the minister said the critical importance of ensuring that the entire energy system is sustainable, including grid, supply, policies, and incentives.

He noted that governments must be willing to invest in infrastructure and enact policy and regulatory changes, particularly concerning pricing.

"A successful public-private sector engagement (PPE) model involves the government doing everything necessary to build infrastructure and adjust policies and regulations.

"When it comes to policy and incentives, they must create a cost structure where alternatives are viable and sustainable," Rafizi said.

-- BERNAMA