SINGAPORE / KUALA LUMPUR, Oct. 17, 2025 — Singapore has taken a major step toward clean energy by signing two agreements with its close regional partner, Malaysia. Collectively, these agreements grant Singapore access to three gigawatts of low-carbon electricity, making it one of the largest cross-border renewable energy arrangements in Southeast Asia.

The first agreement involves Singapore’s Sembcorp Utilities Pte Ltd and Malaysia’s Sarawak Energy Berhad, which will supply approximately 1 GW of hydropower from Sarawak. The second, with Tenaga Nasional Bhd, adds an additional 2 GW of low-carbon electricity from Malaysia. Both agreements are expected to take effect around 2035, pending regulatory approvals and installation of subsea transmission infrastructure.

The development represents a practical step toward decarbonization and a symbolic one, highlighting that regional cooperation is essential for countries with limited domestic renewable energy resources.

What This Means for Singapore and Malaysia

For Singapore, the agreements represent a strategic move to diversify energy sources and strengthen energy security. By integrating 3 GW of low-carbon electricity into its grid, Singapore advances its net-zero emissions target by 2050 and its Green Plan 2030, which emphasizes renewable energy adoption, energy efficiency, and sustainability infrastructure.

Malaysia benefits by leveraging abundant renewable resources, particularly hydropower, to secure long-term contracts and stimulate investment in the energy sector. The collaboration positions Malaysia as a regional leader in clean energy exports and creates opportunities for technological development and cross-border economic growth.

Strategic Implications

Diversification and Energy Security: Relying on imported renewable energy provides Singapore with a hedge against the volatility of global energy markets. These agreements allow the city-state to diversify its energy mix, reduce dependence on fossil fuels, and ensure a stable supply of low-carbon electricity in the decades ahead.

Regional Leadership: The partnership sets a benchmark for regional collaboration on renewable energy. By coordinating efforts across borders, Singapore and Malaysia show that complex energy transitions can be achieved through mutual commitment, shared infrastructure, and strategic alignment. Other nations in Southeast Asia may look to this model when planning their own renewable energy strategies.

Can Cross-Border Green Power Set a Global Precedent?

The Singapore-Malaysia agreements raise a larger question. Can cross-border renewable energy collaborations serve as a template for other regions?

The scale of these agreements is significant. Successful implementation will illustrate how countries with complementary strengths, such as Singapore’s infrastructure and Malaysia’s renewable resources, can create a model for sustainable energy integration.

Such collaborations have the potential to inspire similar initiatives in regions where energy resources are unevenly distributed. Sharing expertise, technology, and capacity allows nations to accelerate decarbonization while maintaining energy security. This approach benefits both energy suppliers and consumers.

A Model for Regional Cooperation

As attention on clean energy intensifies, the Singapore-Malaysia green power alliance demonstrates the value of regional and global energy strategies. Political will, regulatory alignment, and coordinated planning make cross-border renewable energy projects more than simple agreements. They can reshape energy markets, attract investment, and drive sustainable economic growth.

The success of these agreements will benefit both Singapore and Malaysia and signal to the world that collaboration is essential for achieving ambitious climate targets. By combining long-term planning with action, these nations are showing that even energy-intensive urban economies can transition to a sustainable, low-carbon future.

The Singapore-Malaysia green power alliance reflects a forward-looking approach to energy transition. It balances traditional energy needs and supply reliability with innovation through cross-border renewable energy integration, creating a model for sustainable growth in Southeast Asia and beyond.

 

Inputs from Diana Chou

Editing by David Ryder