Will scaling biofuels in Southeast Asia make the region more resilient to oil shocks, or does it introduce new vulnerabilities? Structural risks must be addressed as biofuels take a larger share of the transport fuel mix.
Malaysia's longstanding system of fossil fuel subsidies was built to stabilise prices, but these cannot hold up in prolonged crises of war, supply chain disruptions and volatile fuel markets.
The World Bank has made a volte-face on industrial policy. Southeast Asian countries will need to consider the new policy, but calibrate it across vastly different national contexts.