Energy companies from Malaysia, Singapore and Vietnam have signed a joint development agreement to assess the potential for cross-border trade in renewable energy, with a primary focus on offshore wind power, the companies said in a statement on Monday.
The initiative aims to examine the feasibility of exporting renewable energy generated in Vietnam to Malaysia and Singapore. It involves a consortium from Malaysia—MY Energy Consortium, established by state utility Tenaga Nasional Berhad (TNB) and national oil company Petronas—partnering with Vietnam’s PetroVietnam Technical Services Corporation (PTSC) and Singapore’s Sembcorp Utilities, a subsidiary of Sembcorp Industries.
The proposed energy exchange would utilise a new subsea transmission cable, with power to be routed through Peninsular Malaysia’s national grid, the statement said. The agreement supports broader efforts to enhance grid integration, improve energy security, and advance decarbonisation across Southeast Asia.
“Malaysia’s participation in this initiative reflects our strong commitment to the ASEAN Power Grid vision, which aims to strengthen regional energy security through the creation of a power transit hub,” said Datuk Ir. Megat Jalaludding Megat Hassan of TNB and Tan Sri Tengku Muhammad Taufik of Petronas in a joint statement. “It marks a significant milestone in our collective journey towards achieving net zero emissions.”
The ASEAN Power Grid concept envisions greater connectivity among member nations to facilitate energy sharing and regional sustainability goals. Vietnam, in particular, has positioned offshore wind development as a national priority under government directives to expand the country’s renewable energy capacity.
Singapore has set a target to import up to 6 gigawatts (GW) of low-carbon electricity by 2035, which would account for roughly one-third of its projected energy needs.
Wong Kim Yin, Group CEO of Sembcorp Industries, said the agreement underscores the potential of regional energy collaboration. “This agreement highlights Singapore’s strategic role as a demand centre and a key enabler of cross-border power imports to support its decarbonisation goals,” he said. “We are committed to support ASEAN’s low-carbon transition through shared infrastructure and strengthened partnerships.
