The Japan-Malaysia Leaders' Summit was held on Jan. 10. (Photo: MOFA of Japan)
To reinforce Japan's influence in Southeast Asia, Japanese Prime Minister Shigeru Ishiba embarked on his first official overseas visit after taking office, choosing Malaysia and Indonesia—two key ASEAN member countries—for his trip.
The visit aimed to enhance bilateral cooperation in economic and defense sectors, while also addressing renewable energy and carbon issues, deepening the partnership in sustainable development.
Japan-Malaysia to advance carbon capture, green energy projects
On Jan. 10, Ishiba met with Malaysian Prime Minister Anwar Ibrahim, and the two leaders agreed to continue advancing carbon capture and green hydrogen projects.
This includes collaborations between Japanese companies and Petros, the Sarawak state-owned oil company, as well as Malaysia's national oil company Petronas, to develop hydrogen energy technologies. They also discussed using carbon capture and storage (CCS) technologies to achieve carbon-neutral liquefied natural gas (LNG).
Following the meeting, Anwar emphasized the need to accelerate these initiatives and proposed holding a meeting in May, either in Tokyo or Kuala Lumpur. As the current ASEAN chair, Anwar also noted the gradual formation of the ASEAN grid, calling for Japan’s participation.
Ishiba confirmed Japan’s commitment to strengthening cooperation with ASEAN on supply chain resilience and further deepening ties with Malaysia under the "Asia Zero Emissions Community" (AZEC). This collaboration aims to drive both countries’ green transformation efforts, including green ammonia, carbon capture, and green hydrogen, ensuring energy security and achieving decarbonization.
As of 2023, Japan’s cumulative investment in Malaysia exceeded 102 billion ringgit (about 22.6 billion USD), covering 2,810 manufacturing projects and creating 340,000 jobs. Japan has been Malaysia’s fourth-largest trading partner for nine consecutive years.
Japan’s AZEC to lead energy transition in ASEAN
After concluding his two-day visit to Malaysia, Ishiba flew to Indonesia and held a leadership dialogue with Indonesian President Prabowo Subianto on Jan. 11.
Ishiba expressed support for Prabowo's energy self-sufficiency policy and pledged continued assistance, particularly in the development of the Muara Laboh geothermal power plant, green ammonia, and green hydrogen.
Ishiba Shigeru (Left) met with Indonesian President Prabowo Subianto (Right) on Jan. 11. (Photo: Prabowo's X)
Under the AZEC framework, the Muara Laboh geothermal plant is one of the three priority projects for Japan’s energy transition assistance to Indonesia. The other two projects focus on the Legok Nangka waste-to-energy plant in West Java and peatland management in Central Kalimantan.
Before his trip, Ishiba stated that strengthening ties with ASEAN countries has become more important than ever due to the increasing global uncertainty.
He highlighted Malaysia and Indonesia as key energy suppliers. The visit underscored the massive demand for clean energy in ASEAN countries and showcased Japan’s efforts to solidify its relations with Southeast Asia in response to geopolitical uncertainties, such as the potential return of U.S. President-elect Donald Trump and China's growing influence in the region.
