KUALA LUMPUR (April 23): The Asian Development Bank (ADB) committed US$9 billion (RM35.7 billion) to Southeast Asia in 2025, according to its latest annual report, with Malaysia receiving the smallest portion of the funding.

Of the US$9 billion, US$7.3 billion was allocated to the public sector and US$1.6 billion to the private sector, according to ADB's annual report 2025.

Among Southeast Asian nations, the Philippines received the largest share at US$6.81 billion, followed by Indonesia (US$4.39 billion), and Vietnam (US$1.96 billion). Malaysia’s allocation amounted to US$60.9 million.

For the third year in a row, Southeast Asia ranked as the second-largest recipient of the multilateral institution’s assistance, accounting for 31% of total commitments. South Asia remained the largest, receiving US$9.7 billion or 33% in 2025.

ADB’s focus in Malaysia, a founding member of the bank since 1966, was mainly to support environmental initiatives, particularly in the country’s paper-based packing industry. ADB said it provided US$60.3 million in loans to the private sector, to paper supplier Jingxing Holdings Malaysia Sdn Bhd. The funds were used to expand its wastepaper recycling and packaging paper production in Selangor.

ADB said Southeast Asia faced both natural disasters and long-term environmental issues in 2025. It added that its work emphasised on renewable energy, disaster preparedness, sustainable farming and food systems, and initiatives that promote low-carbon growth and circular economies.

“ADB supported the people of Southeast Asia in 2025 with programmes to ensure adequate and nutritious food, expand access to education and health, and improve daily life through essential infrastructure and services,” said ADB president and chairperson Masato Kanda in the annual report.

The institution said it expects lending to increase in 2026 and 2027. The increase will be supported by additional staffing and technical assistance, alongside reforms to expand the bank’s financing capacity.

These include changes to its capital framework and the removal of lending limits on ordinary operations, which took effect in March 2026, as well as initiatives to grow private sector operations from 20% to 27% of total commitments.

The ADB’s 2026-2028 work programme outlines lending and grant commitments totalling US$98.6 billion. Of this, US$78.7 billion is designated for sovereign operations, while US$19.9 billion is allocated to non-sovereign operations. The programme is expected to support around 240 projects annually, representing a larger increase compared to recent years.

Established in 1966, the ADB is owned by 69 member countries, of which 20 are non-regional members, such as the US, Türkiye, and several European countries.