Malaysia, Laos to fast-track ASEAN power grid, expand port and rail connectivity

Malaysian Reserve

25-05-2025

By AUFA MARDHIAH
MALAYSIA and Laos have agreed to accelerate the second phase of the ASEAN Power Grid project, while also deepening collaboration on transport infrastructure, port development, and digital economy initiatives.
Prime Minister Datuk Seri Anwar Ibrahim said both countries were aligned on pushing forward regional energy interconnectivity, with the next phase aiming to link Laos, Cambodia and Thailand to Peninsular Malaysia and Singapore.
'I agree with Prime Minister Sonexay Siphandone that we should fast-track the second phase to benefit Laos, Cambodia, and Thailand into Malaysia and Singapore,' he said during a joint press conference in Putrajaya today, in conjunction with the Lao PDR Prime Minister's official visit to Malaysia.
He added that the first phase — connecting Vietnam to northern Peninsular Malaysia — is already in progress as part of ASEAN's broader energy integration ambitions.
Malaysia and Laos also reaffirmed their commitment to enhancing trade and logistics connectivity, with updates on the inland port in Perlis that links to a tunnelling port in Laos. The project is expected to be completed within the year.
To support cargo flows between both countries, Anwar said a new agreement has been signed with Penang Port to channel goods through Perlis and onwards to Laos via the inland facility in Tanah Leng.
'This showcases a very important collaboration not just in port operations, but also in trade and investment between our two friendly countries,' he said.
Both leaders also discussed joint efforts in port training and management, with Malaysian ports — including Penang Port, Port Klang, and Port of Tanjung Pelepas (PTP) — ready to offer technical assistance and capacity-building programmes.
In addition, cooperation in labour, digital technology, artificial intelligence (AI), and semiconductors was explored, with both sides expressing interest in expanding talent development and technology sharing.
The two countries also highlighted ongoing progress under the KTMB–LNR–SE memorandum on the proposed ASEAN express train, which aims to shorten travel time between ASEAN countries and China through improved rail connectivity.
Anwar also expressed hope that consensus could be reached for Timor-Leste's full ASEAN membership by October this year, adding that the matter will be discussed further at the upcoming ASEAN leaders' retreat.
On the situation in Myanmar, he reiterated the need to uphold the Five-Point Consensus, calling for continued humanitarian aid, an immediate ceasefire, and constructive dialogue under ASEAN mechanisms.
Anwar further thanked Laos for its support throughout Malaysia's transition into the ASEAN Chairmanship this year and described the bilateral relationship as warm and cooperative.
He added that Sonexay is expected to return for a working visit in the near future to further strengthen government-to-government and private sector ties between both countries.