PHNOM PENH/JAKARTA (Bernama): Asean secretary-general Dr Kao Kim Hourn has urged business stakeholders to support the Asean Power Grid (APG) initiative, which is expected to require US$764 billion for power generation and transmission by 2040.
Speaking at the Cambodia-Asean Business Summit 2025 in Phnom Penh on Thursday, he highlighted that the investment would include US$17 billion for regional interconnectors and US$90 million for preparatory studies.
"While Asean member states are leading the financing efforts, it is crucial to prioritise funding for regional interconnectors to achieve full integration,” he said in his closing remarks, as made available by the Asean Secretariat.
Kao explained that the APG will bridge both maritime and mainland divides, align diverse regulatory frameworks and technical standards, and create a more interconnected and resilient energy landscape across Southeast Asia.
By facilitating cross-border electricity trade, the APG will enhance energy security, promote economic development, and support the integration of renewable energy sources, contributing to the region’s sustainable growth, he added.
On trade and investment, Kao highlighted Asean’s ongoing efforts to upgrade free trade agreements to stay relevant to emerging trends and business needs, with the upgraded Asean Trade in Goods Agreement (ATIGA) addressing digital trade, decarbonisation, and the circular economy.
He noted that Asean’s growing network of trade agreements-including with Australia, the Regional Comprehensive Economic Partnership (RCEP), New Zealand, China, India, and Canada-demonstrates a commitment to lowering barriers, harmonising standards, and reducing costs.
He also emphasised the importance of human capital development through initiatives like the Asean Roadmap on Human Resources Development, underscoring the need for gender equality, youth empowerment, and skills development to keep pace with advances in AI, renewable energy, and manufacturing.
"Professional mobility within Asean will further strengthen regional connectivity and enhance our competitive edge,” he added. - Bernama
