Companies ink deal to export renewable energy from Vietnam to Malaysia Singapore at Asean Summit

KUALA LUMPUR – Malaysia, Singapore and Vietnam will jointly explore the export of renewable energy following an agreement signed by their government-linked firms on May 26 to collaborate on developing a new electricity link.

The signing was witnessed by leaders of all three countries on the sidelines of the Asean Summit chaired by Malaysia.

Under the agreement, the parties will evaluate the feasibility of Vietnam sending power – particularly offshore wind – via subsea cable to Peninsular Malaysia’s north-eastern coast before it is transmitted overland to Singapore.

This represents the latest push from the regional grouping to establish an Asean Power Grid aimed at strengthening energy security and achieving net-zero emissions.

Malaysia’s Deputy Prime Minister Fadillah Yusof, who is also Energy Transition and Water Transformation Minister, told reporters after the signing ceremony that technical and business details are yet to be fully outlined.

But Prime Minister Anwar Ibrahim has been bullish on the project, extolling its economic viability ahead of other options and telling The Straits Times and select regional media outlets in a May 25 interview that the deal was “considered done”.

The collaboration sees a consortium comprising Sembcorp Utilities, a wholly owned subsidiary of Singapore-based Sembcorp Industries, and PetroVietnam Technical Services Corporation (PTSC),a member of the Vietnam National Industry – Energy Group, joining hands with Malaysia’s MY Energy Consortium, an unincorporated consortium established by national electricity provider Tenaga Nasional Berhad (TNB) and state oil giant Petronas.

Under the agreement, the partners will evaluate the feasibility of exporting renewable energy from Vietnam to Malaysia and Singapore via a new subsea cable, wheeled into and through the Peninsular Malaysia National Grid, the consortia said in a joint statement.

“To this end, the consortia will work closely with the relevant national authorities throughout the development process, seeking necessary approvals