INNOVATION REQUIRES CAPACITY TO BUILD - CIMB GROUP CEO

By Karina Imran

KUALA LUMPUR, Oct 27 (Bernama) -- Countries that lack the capacity to build will struggle to innovate, said CIMB Group chief executive officer Novan Amirudin, underscoring the crucial role of infrastructure investment in driving long-term economic competitiveness.

Speaking at the Bloomberg Business Summit on the sidelines of the 47th ASEAN Summit here today, Novan stressed that both governments and private enterprises must continuously innovate to reduce costs and increase earnings, and that such innovation is only possible when supported by strong foundational infrastructure.

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“To innovate, you need to have the capacity to build. That’s where infrastructure comes in. We need to continue to fund infrastructure projects so that countries can have that capacity,” he said.

Novan noted that the definition of infrastructure development has evolved beyond toll roads and power plants to renewable energy, data centres and digital connectivity, which require innovative and adaptable financing models.

Citing Bakun Dam in Sarawak as a successful example of long-term planning, Novan said the project, once criticised for its cost, now provides cheap renewable energy that supports economic growth. 

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“When we look back, it was actually the right thing to do. That is a very important thing that all stakeholders need to do,” he said. 

Looking ahead, Novan highlighted the growing importance of regional energy cooperation, especially in the context of the ASEAN Power Grid initiative, which he said has become more relevant with rising demand for clean energy.

“The ASEAN Power Grid is becoming increasingly relevant as the region’s demand for clean energy continues to rise,” he said, noting that coordinated energy policies could help ASEAN balance sustainability goals with the need for reliable, affordable power.

Novan’s remarks reflect a broader consensus among ASEAN leaders at this year’s summit that sustained investment in infrastructure and energy cooperation will be key to ensuring inclusive growth and enhancing the region’s resilience in an era of rapid technological and environmental change.

-- BERNAMA