Asean’s Green Energy and Digital Innovation Efforts to Bolster Supply Chain Resilience

Intensifying Initiatives Amid Evolving US-China Dynamics

Asean is intensifying its green energy initiatives and digital innovation to bolster supply chain resilience and maintain its role in global trade amid evolving US-China dynamics. Investment, trade and industry minister Tengku Zafrul Aziz said industries across the region are redesigning supply chains with a focus on resilience, while policymakers are fostering collaboration to mitigate risks and seize new opportunities.

Navigating US-China Relations

“Navigating US-China relations is going to be important for Malaysia and Asean because the supply chain is so critical to the region,” Tengku Zafrul said. “Companies are engaging with us. They are redesigning it based on resilience, security, and commercial considerations. As policymakers, when we engage with our neighbours and partners, we must diversify and mitigate risks,” he added.

Malaysia’s National Energy Transition Roadmap

Tengku Zafrul said Malaysia’s National Energy Transition Roadmap aligns with regional efforts such as the Asean Power Grid to ensure accessibility to renewable energy. He noted that advancements in artificial intelligence and digital technologies also present growth opportunities, despite challenges such as chip export restrictions.

Malaysia’s Position as a Small, Open Economy

He highlighted Malaysia’s position as a small, open economy with a trade-to-gross domestic product ratio of about 180%. “For Malaysia, 80% of exports are in manufacturing, while only 20% are in agriculture. The manufacturing sector contributes a quarter, or 25 per cent, of our GDP,” he said.

Asean’s Collective Strength

Tengku Zafrul also emphasized Asean’s collective strength as the fifth-largest economic bloc globally, with a GDP of US$3.8 trillion and a population of 680 million. “With that trajectory, we should become the fourth-largest economic bloc,” he said.

Conclusion

In conclusion, Asean’s efforts to intensify green energy initiatives and digital innovation are crucial in bolstering supply chain resilience and maintaining its role in global trade amid evolving US-China dynamics. By fostering collaboration and diversifying risks, policymakers can create opportunities for growth and development in the region.

FAQs

Q: What are Asean’s efforts to intensify green energy initiatives and digital innovation?
A: Asean is intensifying its green energy initiatives and digital innovation to bolster supply chain resilience and maintain its role in global trade amid evolving US-China dynamics.

Q: How are industries in the region redesigning supply chains?
A: Industries across the region are redesigning supply chains with a focus on resilience, security, and commercial considerations.

Q: What is Malaysia’s position as a small, open economy?
A: Malaysia has a trade-to-gross domestic product ratio of about 180%, with 80% of exports in manufacturing and 20% in agriculture. The manufacturing sector contributes a quarter, or 25 per cent, of its GDP.