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

Cluster initiation sets the foundation by aligning diverse stakeholders on a shared vision, mapping opportunities and identifying early priorities to unlock momentum.This playbook is not a one-size-fits-all model – it is a strategic tool designed to guide not only clusters but also public institutions, governments, investors and financial institutions in translating ambition into coordinated action. By adapting this playbook in their contexts, decision- makers can turn strategy into implementation – helping them to prioritize clusters and define policies that align with national and regional agendas, accelerating investment to build enabling infrastructure. The framework also supports monitoring progress and measuring impact, helping users target interventions where they deliver the greatest economic and environmental returns. Formation 1Partnerships 2Policy 3Technology and infrastructure4Finance Actions –Engage the right partners (e.g. corporates, NGOs, knowledge partners and public-sector actors) to launch the cluster and align on shared goals. –Nominate champions to coordinate initial efforts. –Establish a basic governance structure and draft a high-level cluster charter that defines a shared vision. –Cultivate culture and workforce readiness. –Promote community and social alignment. –Identify applicable policies and stakeholders across local, regional and national levels. –Catalogue likely incentives and subsidies (local and federal) – feed-in tariffs, tax credits, capital subsidies, concessional finance and grants. –Identify regulatory bottlenecks affecting shared infrastructure. –Prioritize immediate information gaps and rapid advocacy asks that reduce near-term pilot friction. –Evaluate energy mix, efficiency levels and resource use. –Identify and map cluster members’ decarbonization technology and infrastructure needs (e.g. CCUS, renewable energy, transport corridors, digital). –Build a cluster-level key performance indicator (KPI) baseline (GHG, GDP , jobs, water). –Undertake preliminary technical scans and assessments. –Identify catalytic funding sources – e.g. multilateral development banks (MDBs), green funds, public grants. –Develop a list of viable investors for early signalling and requests for funding. –Catalogue required de- risking instruments for later stages (e.g. loan guarantees, first-loss capital, revenue support); identify responsible stakeholders. –Build business value case and funding requirements from preliminary technical scans, along with key market drivers. Stage profileAd-hoc or informal coordination without structured governance or shared accountabilityMinimal alignment with national or ASEAN transition targets; limited or passive engagement with policy-makersIsolated firm-level clean tech adoption; minimal R&D; minimal shared infrastructure or circular initiatives; no/basic ESG trackingLimited or no energy transition investment; traditional finance instruments only; limited project pipeline4.1 Formation stage Formation stage TABLE 1 Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration 27