Industrial Transformation in ASEAN A Cluster-Driven Model for Regional and Global Collaboration 2026

CASE STUDY 5 Bintulu Industrial Hub: industrial decarbonization through policy and technology integration Context: Located on Sarawak’s northern coast, Bintulu is Malaysia’s LNG hub and the state’s major energy export centre, with petrochemical, manufacturing and energy facilities supported by robust port and pipeline infrastructure. Objective: Sarawak aims to transform Bintulu into Malaysia’s flagship low-carbon industrial hub, anchored in the Post COVID-19 Development Strategy 2030’s (PCDS) environmental sustainability pillar – one of its three strategic pillars, alongside economic prosperity and social inclusivity, supported by state-level policies and actions. Intervention: Bintulu’s low-carbon transformation is rooted in strong policies, which also enable technology deployment and strategic partnerships. Sarawak’s energy future is guided by the Sarawak Energy Transition Policy (SET-P), which sets ambitious 2030–2050 targets across seven pillars – including renewables, hydrogen and CCUS.116 Additionally, Sarawak is preparing to introduce a carbon levy as a pricing instrument to incentivize emission reduction among high-emitting sectors and attract green investment.117 Together, these measures are driving clean energy projects across Sarawak, including: –Hydrogen projects: The Sarawak Hydrogen Economy Roadmap (SHER) guides hydrogen development. Central to this strategy is the establishment of the Sarawak Hydrogen Hub in Bintulu, which will anchor flagship projects such as the H2ornbill and H2biscus projects, and position Sarawak as a clean hydrogen production and supply hub, aligning with the objectives of the National Energy Transition Roadmap (NETR).118Simultaneously, the Sarawak Government commissioned a feasibility study through the Bintulu Development Authority, assessing hydrogen-powered autonomous rail transit (ART) and buses to decarbonize public transport.119 –Carbon capture and storage: Harnessing its natural geological assets, including depleted hydrocarbon reservoirs and saline aquifers, Sarawak is strategically positioning itself as a regional hub for CCUS. PETROS, as Sarawak’s state-owned oil and gas company, is leading the development of Samalaju. The Kasawari CCS Project serves as a key reference, enabling the commercial development of the high-CO2 gas field and supporting Malaysia’s first large-scale CO2 injection.120 To accelerate development, PETROS is currently working closely with Japan and Singapore to enable these projects to be financed and advanced with backing from international oil companies as part of their decarbonization plan. Bintulu industrial cluster embodies Sarawak’s strategic potential and our determination to shape the next era of clean industrial development. With established hydrogen and CCS projects now moving into commercial scale, we are building an integrated industrial ecosystem that attracts global partners, strengthens our energy transition and supports Malaysia’s long-term economic competitiveness. Datuk Amar Haji Mohamad Abu Bakar Bin Marzuki, Sarawak State Secretary, Sarawak, Malaysia Image credit: Courtesy of Bintulu Port Holdings. 21 Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration