Digest

The policies in the field of building energy conservation and intelligence in Southeast Asian countries are highly active. In Vietnam, the President of the National Assembly is promoting the digital transformation of cities, and on July 1st, a new version of the "Construction Law" will be implemented, focusing on supporting the development of green and intelligent building materials; The Thai government has launched a large-scale low-interest loan program to encourage families to install rooftop photovoltaic systems; In Quezon City, the Philippines, efforts are focused on promoting the photovoltaicization of public facilities and the implementation of green building standards; Malaysia has incorporated the United Nations' Sustainable Development Agenda into its urban planning; Indonesia is concentrating on the establishment of the implementation capabilities of green building projects by local governments. At the regional level of ASEAN, the Urban Leaders Conference has emphasized the core role of digital transformation and sustainable development in urban development.

Regional Level (ASEAN) Dynamics

The ASEAN City Leaders Conference focused on digital transformation and sustainable development

On June 8th, the ASEAN City Leaders Conference was successfully held in Hanoi. The participants concentrated on discussing current common concerns in ASEAN cities' development such as digital transformation, artificial intelligence, and sustainable development, and reached a consensus: Cities are not only the driving force for economic growth, but also play a significant role in promoting innovation, responding to climate change, enhancing resilience, and improving the quality of people's lives. Vietnamese National Assembly President Nguyen Cong Minh suggested that each city continue to play a pioneering role in innovation, digital transformation, and technological development, and promote green growth, energy transition, and the construction of sustainable cities.

Latest policies and developments of various countries

1.Vietnam

(1)The Ministry of Industry and Commerce has released the implementation plan for rooftop photovoltaic power generation, with public institutions being the primary target group. 

On May 14th, Deputy Minister of Industry and Trade of Vietnam, Nguyen Hoang Long, signed Decision No. 1126/QĐ-BCT, officially releasing the implementation plan for the instructions of the Prime Minister No. 10/CT-TTg. The plan states: The national electricity consumption reduction rate should be no less than 3% in 2026, and the electricity reduction target during the high-temperature electricity consumption peak season (April - July) should be no less than 10%. In terms of energy self-sufficiency facilities construction, the plan prioritizes the promotion of self-generation and self-consumption rooftop photovoltaic systems in government agencies, industrial and commercial enterprises, and residential buildings. The annual goal is that 10% of government agencies and 10% of residential buildings across the country complete rooftop photovoltaic installations. Government agencies must formulate quarterly electricity reduction plans, and the electricity reduction effectiveness should be included in the annual performance assessment and employee rewards and punishments. The overall electricity consumption of public lighting and outdoor advertising should be reduced by at least 30%. The Ministry of Industry and Trade also proposed to further increase the minimum energy efficiency standards for electrical equipment by 5% and promote the upgrade of motor energy efficiency to the IE2 - IE3 grades. 

(2) The new version of the "Construction Law" will come into effect in July, and intelligent buildings will receive policy incentives. 

Starting from July 1st, the 2025 version of Vietnam's "Construction Law" has officially come into effect. This law clearly stipulates that the state will give priority in policies to encourage and support the research, investment and use of new building materials, recycled materials, green materials, lightweight materials, intelligent materials, and environmentally friendly materials. At the same time, a certification mechanism for green buildings and intelligent buildings will be established to encourage the development of buildings that effectively utilize energy and resources. 

(3) The Congress promotes digital transformation as the core of urban development 

On June 9th, Vietnamese National Assembly President Nguyen Cong Minh emphasized during a meeting with leaders of various ASEAN cities that digital transformation and sustainable development are the key directions for current urban development, and called on all Vietnamese cities to take the lead in these areas. 

2. Thailand

(1) The government has launched a low-interest loan program worth 30-40 billion Thai baht to promote rooftop photovoltaic installations. 

The Thai government is planning to implement a low-interest loan program worth 300 to 400 billion baht to encourage citizens to install rooftop solar power generation systems. This plan is part of the government's 400 billion baht emergency plan to address the energy crisis, with 200 billion baht allocated for restructuring the energy sector. The initial plan allows each household to choose a rooftop solar system of 5 to 10 kilowatts, with a total installed capacity not exceeding 500 megawatts. Excess electricity can be sold to the government at a price of 2.20 baht per unit. The relevant proposal is expected to be approved and promulgated within this month. 

(2) The government agencies are required to reduce their energy consumption by 10%. 

Previously in March (when the policy was still in effect), the Thai government had required all government agencies to reduce energy consumption by 10%. The core measures included setting air conditioning temperatures at 26-27°C, eliminating unnecessary electricity usage, switching to online meetings, and supporting remote work. 

3. Philippines

(1) Quezon City is vigorously promoting the photovoltaicization of public facilities and green buildings 

Joy Belmonte, the mayor of Quezon City, emphasized at the 2026 Livable City Laboratory event that the city's efforts to reduce greenhouse gas emissions mainly rely on three key plans: the solarization of public facilities, the implementation of green building standards, and energy efficiency and conservation measures. Currently, solar panels have been installed in 5 municipal buildings and 3 public hospitals, and the plan is to further expand the solarization coverage to 25 public schools this year. The city continues to implement the Quezon City Green Building Code to ensure that new and existing buildings are cost-effective, climate-wise, and have the ability to resist climate risks. 

(2) The proposal for the PEZA green building certification framework has been released. 

In mid-June, the real estate consulting firm Savills Philippines released a report titled "Releasing the PEZA Manila Metropolitan Area Suspension Order: Green Building Certification Framework", suggesting that the government should conditionally lift the PEZA economic zone certification in the Manila metropolitan area. Only buildings that have obtained international green building certifications such as LEED, BERDE, EDGE or WELL should be granted access. By converting environmental protection standards into a market screening tool, it aims to attract high-end multinational tenants with strict ESG compliance requirements. 

(3) The green building framework is positioned as the key to the recovery of the Manila office building market. 

The same report indicates that after the withdrawal of POGO and the normalization of hybrid working, the Manila Metropolitan Area is facing a problem of an oversupply of high-quality office spaces. However, if the market can be guided towards transformation through the green building framework, the excess supply of real estate can be transformed into a sustainable competitive advantage, allowing Manila to be repositioned as a global high-end business center that meets ESG standards. 

4. Malaysia

(1) The United Nations SDG agenda will be incorporated into urban planning 

On June 9th, Malaysia's Minister of Housing and Local Government, Ni Keman (who is also the chairperson of the United Nations Habitat Assembly), announced that the government would officially incorporate the "United Nations 2030 Agenda for Sustainable Development" into urban planning. The Ministry of Housing is actively promoting the National Circular Economy Council, the Malaysian Smart City Rating Framework, and the Waste-to-Energy (WtE) project, and plans to integrate green technologies such as solar panels into public housing projects. 

Ni Kemin also called on the real estate industry to abandon the traditional method of clearing land by cutting down trees, and prioritize ecological protection. He particularly praised a residential project where nearly 30% of the development area was reserved as a forest ecosystem. This project incorporated biomimetic design, passive cooling strategies, and natural ventilation as passive energy-saving elements, and has received the GreenRE Gold-level interim certification. 

(2) The household solar rebate program will be launched in June. 

Although the Department of Energy mainly promotes civilian solar energy, the pace and direction of its promotion have a positive demonstration and spillover effect on the application of solar energy in public buildings. On May 22nd, the government announced that starting from June 1st, it will officially implement the SuRIA Home household solar rebate and incentive assistance program. The government has allocated 150 million ringgit, and household users who install residential rooftop solar systems can receive a maximum rebate of 3,000 ringgit. 

5. INDONESIA

(1) Local governments call for practical implementation support for green building projects 

On June 11th, the Indonesian Local Government Association (Apkasi) held a stakeholder consultation meeting in Jakarta. The executive director of Apkasi pointed out that the construction and construction industry contributes approximately 21% of global greenhouse gas emissions, and in Indonesia, this sub-sector is the largest contributor to emissions. Although the Ministry of Mineral Resources, Public Works, and Internal Affairs of Indonesia, along with GIZ SETI, are jointly compiling the "Guidelines for Financing Green Buildings and Energy Efficiency Projects of Local Governments", the real challenge faced by local governments is not a shortage of funds, but rather the issue of the readiness of the projects themselves - many counties and cities lack baseline data on energy consumption, have never conducted energy audits, and have limited technical capabilities, making it difficult to prepare projects that are suitable for financing. Apkasi called on the central government to provide specific and actionable on-the-ground guidance, including through simple "quick-win" projects (such as improving the efficiency of lighting systems and renovating public facilities) to help local governments build confidence.