Article by Celine Ng | March 06, 2025

As ASEAN advances toward becoming the world’s fourth-largest economy by 2030, the region faces a defining challenge—ensuring that economic growth is not just rapid but also resilient against climate risks. The ASEAN Youth Economic Forum (AYEF) 2025, themed “Climate Change and Building a Climate-Resilient Economy”, underscores the urgency of this transition. Hosted in Kuala Lumpur under Malaysia’s ASEAN chairmanship, the forum is in alignment with Japan’s Green Growth Strategy and ASEAN’s Climate Action Plan, emphasizing the indispensable role of youth leadership in shaping sustainable economic policies.

One of the forum’s core messages is clear: Systemic change cannot happen within one company, sector, or government alone—it requires cross-sector collaboration, with young changemakers at the center.

Why Businesses Must See Youth as Key Drivers of Sustainable Business Growth, Not Just Beneficiaries

Youth engagement in sustainability has traditionally been positioned under Corporate Social Responsibility (CSR) initiatives— often seen as an optional goodwill initiative rather than a business priority. However, businesses are increasingly realizing that empowering young leaders and integrating sustainability into core operations is essential for long-term resilience, innovation, and market relevance in a rapidly changing economy.

Young people across ASEAN are increasingly vocal about climate action, recognizing its direct impact on their future. Surveys indicate that a vast majority of youth in the region see climate change as a critical challenge, with many already taking action in their communities, clearly denoting that they are not passive observers (UNDP, 2020). They are problem-solvers, consumers, and future business leaders shaping markets that are increasingly driven by ESG principles, sustainable finance, and impact investing.

Malaysia’s Minister for Natural Resources and Environmental Sustainability, YB Tuan Nik Nazmi Nik Ahmad, has stressed the importance of inclusive economic growth, stating:

“Youth in ASEAN are increasingly aware of the environmental challenges we face. They are witnessing the direct impact of climate change in their communities, from extreme weather events to pollution. They want to know how they can contribute and what kind of support they can receive from governments, businesses, and NGOs.”

ASEAN’s economic progress must not be measured solely by GDP growth but by its ability to uplift all communities, particularly those most vulnerable to climate risks. While individual efforts are crucial, lasting change requires systemic action at the governmental and corporate levels. Businesses must move beyond symbolic youth engagement and embed youth leadership into their decision-making, supply chains, and investment strategies.

Youth-Led Innovations Shaping a Climate-Resilient ASEAN

Across ASEAN, young innovators are already driving solutions that address pressing environmental challenges. For instance, these were demonstrated by the youth changemaker across ASEAN during the forum:

(1) FLINT’s paper battery technology presents a sustainable alternative to conventional energy storage, reducing electronic waste while accelerating the clean energy transition.

(2) EcoGarage, a Malaysian youth-led initiative, is revolutionizing sustainability education by equipping young innovators with hands-on experience in circular economy solutions.

Beyond technology, youth-led movements are shaping policies and business models that prioritize climate adaptation, circular economy principles, and low-carbon solutions. These initiatives underscore a crucial point: youth are not just climate activists; they are economic contributors, innovators, and solution providers.

Strengthening Regional Partnerships: Empowering Young Leaders for a Climate-Resilient

During the forum, it was highlighted that a strong ASEAN-Japan partnership is essential in fostering and scaling youth-driven climate solutions. Programs such as the Japan-ASEAN Green Innovator Academy are equipping young business leaders with the skills and resources to drive the green transformation and energy transition. Similarly, the Asia Zero Emission Community (AZEC) strengthens regional cooperation on decarbonization, particularly in ASEAN’s energy sector, where nations are working toward net-zero emissions.

At the national level, MATRADE showcased Malaysia’s Government Sustainability Engagement Program under the National Trade Blueprint, underscoring the importance of ESG adoption, responsible investment, and collaborative public-private partnerships in driving sustainable development. By embedding sustainability into trade and investment strategies, Malaysia aims to accelerate ASEAN’s shift towards a low-carbon economy and drive enduring sustainable development.

Moving from Symbolic Engagement to Authentic Inclusion

It’s time to move beyond performative youth engagement to meaningful inclusion. Businesses, governments, and policymakers must recognize that youth are not just a demographic to be consulted; they are co-creators of solutions. This includes:

1. Actively integrating youth into corporate decision-making, strategic sustainability strategies, and investment portfolios.
2. Investing in mentorship programs, startup incubation, and employment pathways that empower youth to lead in the green economy.
3. Creating structured platforms for youth-business-government collaboration, such as the ASEAN Youth Economic Forum (AYEF), to translate ideas into concrete action.

AYEF 2025 presents an invaluable platform for young leaders to proactively engage in climate policy discussions, explore innovative green technology, sustainable finance models, and collaborate with industry experts. However, meaningful change requires more than just dialogue—the private sector must step up as a key enabler, providing youth with the tools, opportunities, and capital needed to drive ASEAN’s sustainability agenda forward.

BCSD Malaysia thanks AYEF 2025 for championing youth leadership as a key driver of ASEAN’s climate-resilient economy. As the region navigates its transition to a sustainable future, one truth is clear: youth are not just part of the conversation—they are the architects of a more inclusive and prosperous green economy. The companies that recognize and act on this today will be the ones leading ASEAN’s green transformation tomorrow.