Malaysian, Vietnamese and Singaporean firms ink landmark deal for export of renewable energy
KUALA LUMPUR, May 26 — In a landmark move for regional energy cooperation, leading energy companies from Malaysia, Singapore, and Vietnam have signed a joint development agreement to explore the export of renewable electricity from Vietnam to Malaysia and Singapore.
This strategic partnership highlights the growing commitment among industry leaders to advance regional power integration and accelerate decarbonisation through commercially viable solutions.
Through this agreement, Malaysia, represented by MY Energy Consortium, an unincorporated consortium established by Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd (Petronas), will collaborate with a consortium comprising PetroVietnam Technical Services Corporation (PTSC), a member of Vietnam National Industry–Energy Group (Petrovietnam), and Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Singapore-based Sembcorp Industries (Sembcorp).
Together, the consortia will focus on unlocking Vietnam's rich renewable energy resources -- particularly offshore wind power -- as a source for green electron generation and to supply clean electricity across borders, they said in a joint statement here today.
This alliance reflects the growing momentum towards a regionally integrated Asean Power Grid.
Under this agreement, the consortia will evaluate the feasibility of exporting renewable energy from Vietnam to Malaysia and Singapore via a new subsea cable, wheeled in and through the Peninsular Malaysia National Grid, with potential additional firming renewable energy generation and storage, they said.
'To this end, the consortia will work closely with the relevant national authorities throughout the development process, seeking necessary approvals at various project phases and paving the way for this significant regional power integration and energy interconnection.'
As the current Chair of Asean in 2025, Malaysia plays a central role in fostering collaborative efforts that advance sustainability, resilience and economic growth in the region.
'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.'
'This tripartite partnership is a step forward in advancing transnational green infrastructure, tapping into Vietnam's renewable energy potential, and delivering stable, low-carbon electricity to communities and businesses. It marks a significant milestone in our collective journey towards achieving net zero emissions,' said TNB president/chief executive officer (CEO) Datuk Ir. Megat Jalaluddin Megat Hassan and Petronas president and group CEO Tan Sri Tengku Muhammad Taufik.
As a member of Asean, Vietnam is advancing its strategic vision to become a regional renewable energy hub, driven by a strong commitment to clean energy development, emissions reduction and meeting Southeast Asia's rising energy demands.
Vietnam's Prime Minister Pham Minh Chinh has underscored offshore wind as a national priority and is actively steering bold, targeted directives to accelerate the growth of renewable energy.
This demonstrates the government's strong political will and strategic commitment to building a sustainable energy landscape.
By participating in this trilateral collaboration, Vietnam seeks to catalyse new economic opportunities, stimulate sustainable growth and generate quality employment, while reinforcing Asean's shared ambition for a resilient, low-carbon energy future.
'This agreement highlights the role of PTSC in particular, and PVN as a whole, in advancing national energy transition strategies. We expect its effective implementation will mark a significant milestone – a starting point for renewable energy investment in Vietnam,' said PTSC president and CEO Tran Ho Bac.
Singapore's target is to import around 6GW of low-carbon electricity by 2035, which is around one third of the nation's energy demand then. Connecting regional power grids will also promote the development of renewable energy in the region and pave the way to realising the Asean Power Grid vision.
Sembcorp group president and CEO Wong Kim Yin said: 'We are committed to supporting Asean's low-carbon transition through shared infrastructure and strengthened partnerships.'
This agreement endeavours to open pathways for a scalable model of cross-border renewable energy cooperation in Southeast Asia, which would position the region as a global leader in collaborative decarbonisation and energy transition.
The formal agreement exchange ceremony between MY Energy Consortium, PTSC and Sembcorp was held on the sidelines of the Asean Summit in Kuala Lumpur, Malaysia, on May 26, 2025.
The ceremony marked a significant step forward in operationalising the tripartite collaboration, affirming a shared commitment to advancing cross-border renewable energy trade.
This milestone reflects growing momentum in the realisation of the Asean Power Grid, reinforcing regional cooperation towards a more resilient, sustainable and interconnected energy future. — Bernama
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