Singapore’s 2027 Asean chairmanship could advance sustainability, regional energy integration

[SINGAPORE] Sustainability is expected to feature prominently on Singapore’s agenda when it assumes the Asean chairmanship in 2027, with the upcoming launch of a Green Economic Framework Agreement (Gefa), said Satvinder Singh, deputy secretary-general for the Asean Economic Community.

The implementation of the Digital Economy Framework Agreement (Defa) will also be a key priority during Singapore’s chairmanship, he added. The agreement is scheduled to be signed at the 49th Asean Summit in November 2026.

While Defa is a regional government-to-government agreement aimed at harmonising digital trade rules, including those governing cross-border data flows, Gefa seeks to guide regional cooperation in emerging green industries.

“The big thing clearly for Asean today is how to work with all the powers and much of that manifestation is not going to change,” Singh said. “We want to work with everyone, from the Chinese, Americans, Russians, Indians (and) this is the way Asean makes itself relevant.”

He added: “These fundamentals will not change under Singapore’s chairmanship.”

He was speaking at a fireside conversation titled “Singapore: Asean’s Cockpit in 2027” at the Association of Chartered Certified Accountants’ (ACCA) annual conference on Friday (Oct 9).

Moderated by George Thomson, ACCA’s public affairs manager for Asia-Pacific, the session examined Asean’s economic priorities as the region navigates multiple overlapping challenges, from energy supply disruptions stemming from the conflict in the Middle East to a fragmenting global trading system.

Despite these headwinds, Asean’s economy grew by nearly 5 per cent last year, Thomson noted. He also highlighted the region’s upcoming leadership transition, with the Philippines set to conclude its 2026 chairmanship at the November summit before Singapore takes over in 2027.

Against this backdrop, Singh identified energy security as one of the most pressing challenges facing the region, while urging Asean economies to seize the current crisis as an opportunity to accelerate their transition towards cleaner energy sources.

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South-east Asia has been particularly exposed to disruptions in energy supplies, with about 80 per cent of the oil transported through the Strait of Hormuz from the Gulf flowing to the region before the Iran war began.

Singh, who recently attended the 44th Asean Ministers on Energy Meeting in Manila, said the sense of panic that gripped parts of the region in April had since eased, as countries began diversifying their energy supplies away from the Middle East and building partnerships with non-traditional suppliers.

However, he said the region must now look beyond short-term supply diversification and use the crisis to accelerate its longer-term transition towards sustainable energy.

Higher oil and gas prices are expected to increase the region’s energy import bill by close to US$200 billion next year, he noted.

“Instead of spending US$200 billion and getting the oil and gas companies richer, isn’t this a time to use that US$200 billion to reorganise our energy dependence on fossils and look at green investments,” Singh said.

He added that he hoped Singapore would take a stronger lead in driving this shift during its 2027 chairmanship.

Balancing act

One key initiative in this effort is the Asean Power Grid, a regional connectivity project that aims to facilitate cross-border electricity trading and enable countries to share energy resources more efficiently.

Although the initiative has been discussed for about two decades, Singh said the current energy crisis had strengthened the case for greater regional connectivity.

“Because of the crisis, you will see a greater need of the whole region to balance demand and supply,” he added, noting that Asean has considerable renewable energy resources, particularly hydropower in countries such as Cambodia, Laos and Myanmar.

These countries, he suggested, could potentially supply cleaner electricity to more industrialised economies in the region such as Thailand, Indonesia, Malaysia, Singapore and the Philippines.

Greater connectivity would allow countries to draw on one another’s energy resources instead of continually investing in additional generation capacity independently.

“The energy equation is going to be a big discussion next year and Singapore is going to lead (it),” said Singh.

Beyond energy and sustainability, Singh also called for greater integration of professional services and skills across the region. He urged Singapore’s accountancy sector to adopt a more open approach as Asean economies continue to expand.

Although professional qualifications such as those recognised by ACCA are acknowledged across Asean member states, professionals still face barriers to practising in other countries, he noted. Differences in national requirements continue to limit mobility and make it difficult for firms to operate across borders.

“Instead of being very exclusive, it is time for all of us to think of making it a little bit more inclusive and allowing for a greater amount of interoperability of our talents and skills in our region,” Singh said.

He added that demand for specialised skills would intensify as digital transformation, artificial intelligence and sustainability reporting reshape the professional services landscape.

Accountants and other professionals would therefore need to develop expertise in areas such as AI and climate reporting to meet the region’s growing needs.