1 AUG 2024

Valuing Nature in ASEAN’s Bioeconomy 

By Bey Soo Khiang, Vice Chairman, RGE, in collaboration with Ecosperity.


  • Over half of global GDP (about US$44 trillion) depends on nature and its services. If nature is not safeguarded, businesses will face massive disruptions to operations, supply chains and the economy as a whole.
  • Robust policies at both national and corporate levels are needed to incentivise investments to catalyse biodiversity protection within the region’s bioeconomy.
  •  By valuing and protecting our natural capital today, ASEAN as a region can continue to build its bioeconomy and a resilient and sustainable future for all. 

The bioeconomy transforms biological resources from land and sea into life’s essential goods used by billions of people every day. The ASEAN region, with its incredibly rich biodiversity, plays a crucial role in the bioeconomy. Despite covering only 3% of the planet’s land area, it is home to approximately one fifth of the world’s known plant and animal species. 

The developing economies within ASEAN can play a key role in the region’s bioeconomy that employs over 8% of the global workforce and generates an impressive US$2.3 trillion annually, with growth projected to rise even further.

However, can the ASEAN bioeconomy grow sustainably while addressing biodiversity loss caused by habitat destruction, invasive species, climate change and pollution? 


The economic case for nature protection

For businesses, the question is not whether we can do so, but we must do so. 

Protecting nature is not just an environmental imperative; it has become a business necessity. According to a United Nations study, climate-induced extreme weather cost businesses US$280 billion worldwide. By 2060, disruptions to businesses worsened by climate change could result in up to US$24.7 trillion in global economic losses

The reality is over half of global GDP (about US$44 trillion) depends on nature and its services. Nature alone generates US$150 trillion annually in ecosystem services. If nature is not safeguarded, businesses will face massive disruptions to operations, supply chains and the economy as a whole

One solution is to invest in innovations and initiatives that integrate production with protection. The Production-Protection model helps protect forests from external threats by integrating plantations and forest restoration areas. By creating a vested interest in nature conservation, the long-term economic success of bioeconomy businesses thus hinges on their ability to safeguard natural resources and mitigate climate change.


Putting Production-Protection in action

An example is RGE, a large global bio producer which has adopted a production-protection model by forming a protection ring of plantations around its conservation areas to prevent illegal encroachment, poaching and logging, as well as protect flora and fauna. 

In addition, the group has a 1-for-1 commitment to conserve and restore one hectare of natural forest for every hectare of plantation managed. To date, it has achieved 80% of its target. This includes conserving and restoring more than 150,000 hectares of diverse tropical peat forests under its Restorasi Ekosistem Riau (RER) programme, one of the largest private sector forest restoration projects in Southeast Asia.

Conservation forests need to be actively managed and to ensure long-term funding for its conservation initiatives, RGE’s pulp and paper business allocates US$1 to a conservation fund for every tonne of wood that it brings to its mill. This fund is crucial for supporting various activities, including the conservation and restoration of natural habitats, biodiversity research, and the operational costs associated with maintaining protected areas. 

By tying financial contributions directly to production levels, the company creates a reliable, long-term funding mechanism that reinforces its commitment to environmental stewardship and sustainable practices. 


Catalysing nature protection

Above all, robust policies are needed to incentivise investments to catalyse biodiversity protection within the region’s bioeconomy.

Indonesia, for example, has a permanent ban on new forest clearance for activities such as palm plantations or logging, along with regulations for indigenous communities to acquire legal rights to traditional lands. Malaysia has pledged to keep at least 50% of its land area under natural forest cover, while the Philippines has promised to replant trees on all remaining degraded former forestlands by 2028.

Singapore’s Sustainable Air Hub Blueprint mandates that all outbound flights must use sustainable aviation fuel (SAF) by 2026. RGE, for example, have adopted a 'waste-to-value' approach through its agribusiness Apical, where they transform agricultural waste and residue to feedstock for the production of SAF. This model not only helps decarbonise the aviation industry, but also aligns with RGE’s broader sustainability commitments and strategy.

Policies at both the national and corporate levels can accelerate progress toward achieving net-zero goals.


Strengthening regional cooperation

In September 2023, the ASEAN Centre for Biodiversity signed a Memorandum of Understanding with the ASEAN Business Advisory Council to establish biodiversity-friendly investment standards across ASEAN member states. This partnership is designed to enhance biodiversity conservation and promote sustainability practices within business operations throughout Southeast Asia. 

Central to their collaboration is the goal of integrating biodiversity considerations into the region’s economic activities. This includes fostering greater engagement in the carbon trading market and promoting the adoption of nature-based solutions to combat climate change. By establishing these standards, the partnership seeks to drive systemic change in how businesses perceive and incorporate nature-based solutions into their sustainability strategies. It represents a significant step towards harmonising approaches to biodiversity conservation across ASEAN, thereby fostering a more resilient and sustainable economic landscape in the region. 


The value of nature

The pricing of natural capital to encourage even greater investments in biodiversity protection is in question. The truth is, unlike carbon – which has a uniform price regardless of where it is emitted, nature and biodiversity cannot easily be priced due to a lack of “fungibility”. 

While a perfect system for valuing nature’s capital may not exist yet, waiting for one is not an option. Stakeholders across the ASEAN bioeconomy, from policymakers and corporations to local communities, must collaborate to share best practices, spur and catalyse investments in research and development, and create supportive policies that incentivise sustainable practices. 

By valuing and protecting our natural capital today, ASEAN as a region can continue to build its bioeconomy and a resilient and sustainable future for all.  


About the author:

Bey Soo Khiang

Vice Chairman, RGE

Since 2011, Bey Soo Khiang has served as the Vice Chairman of RGE and Chairman of APRIL Group. At RGE, he oversees all its business groups in areas such as sustainability, continuous improvement, and digital transformation. As Chairman of APRIL Group, Soo Khiang actively guides APRIL’s operations in Indonesia on matters relating to fibre plantations and manufacturing operations.

Before joining RGE, Soo Khiang spent 11 years in Singapore Airlines and held key appointments such as Chairman of SIA Cargo Pte Ltd, Chairman of Silkair Pte Ltd, Chairman of Singapore Flying College, and Board Member of Virgin Atlantic Limited. He was also Singapore’s Chief of Defence Force (CDF) from 1995-2000 and played an instrumental role in defence diplomacy by strengthening and expanding ties between the Singapore Armed Forces and other armed forces around the world.



Valuing Nature in ASEAN’s Bioeconomy