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

The World Economic Forum, in collaboration with Accenture, launched the Transitioning Industrial Clusters (TIC) initiative,1 which connects stakeholders across policy, industry, finance and technology to align on objectives, approach and strategy in building new industries and capabilities, while upgrading existing industries and skills. This includes sharing best practices and knowledge, pooling risks and expertise, as well as promoting pro-business regulatory policies and standards to enable transformational change at speed and scale. Building on this mission, the TIC is also supporting the green transition of hard-to-abate industrial sectors, such as the production of concrete, aluminium and steel, which account for nearly 30% of global Scope 1 and 2 greenhouse gas (GHG) emissions. This rises to nearly 40% when including the hard-to-abate transport sectors, namely aviation, shipping and trucking.2 Today, TIC supports a rapidly expanding global network of 40 signatory clusters in 20 countries, contributing $508 billion to global gross domestic product (GDP), sustaining 4.6 million jobs and carrying the potential to reduce carbon dioxide equivalent (CO2e) emissions by 877 million tonnes.3 This is equivalent to the ninth-largest emitter globally, if it were a country.4 In South-East Asia, the Malaysia Centre for the Fourth Industrial Revolution (MYCentre4IR), hosted by MyDIGITAL Corporation and part of the World Economic Forum’s global network, plays a central role in advancing the TIC agenda. As part of a global ecosystem of technology governance innovators, MYCentre4IR supports Malaysia’s ambition to lead in sustainability, the energy transition and digital transformation, and has been instrumental in anchoring TIC’s momentum in Malaysia and across the Association of Southeast Asian Nations (ASEAN). As chairperson of ASEAN in 2025, the Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim, announced that TIC will be adopted as a national agenda, uniting companies and public institutions to drive sustainable economic growth and development. Recognized as a national priority under the Malaysia Digital Economy Blueprint and aligned with the National Fourth Industrial Revolution Policy, National Industrial Masterplan and National Energy Transition Roadmap, TIC strengthens Malaysia’s efforts to scale industrial transformation and accelerate the shift towards a more sustainable, competitive and digitally enabled economy. Inspired by this bold and strategic vision, this paper takes a close look at how industrial clusters can catalyse more inclusive, resilient and sustainable growth among ASEAN economies. By sharing insights and practical pathways forward, this paper seeks to highlight the opportunities for trade, business and investment partnerships for policy-makers, public institutions, industry players, investors, and development partners in shaping and participating in a very exciting chapter of ASEAN’s green transition and development. Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global CollaborationJanuary 2026 Gim Huay Neo Managing Director, World Economic ForumStephanie Jamison Chair, Global Resources Industry Practices; Lead, Global Sustainability Services, AccentureAdrian Marcellus Chief Executive Officer, MyDIGITAL Corporation; Head, MYCentre4IRForeword Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration 3