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Malaysia to lead regional grid integration starting with Vietnam-Singapore link — PM

22 May 2025, 1:34 AM
Malaysia to lead regional grid integration starting with Vietnam-Singapore link — PM

PUTRAJAYA, May 22 — Malaysia will spearhead the first phase of an ambitious regional power grid integration plan, beginning with an economically viable connection between Vietnam, northern Malaysia and Singapore, said Prime Minister Datuk Seri Anwar Ibrahim.

“In the first phase, what is deemed to be more economically viable is to connect Vietnam to northern Malaysia and the south, and then link it into Singapore through our National Grid,” he said, noting that Petronas could be assigned a leading role in implementing this segment of the project.

Future phases will extend the regional grid to include Cambodia, Thailand, and Sarawak, leveraging the east Malaysian state's strength in alternative energy sources like gas.

“This opens the possibility of delivering energy to Kalimantan, where Indonesia’s new capital is situated, and even to the southern Philippines,” Anwar said.

He was speaking during a briefing session, which included discussions on the Asean 2025 Summit, with editors from local and international media organisations at the Seri Perdana Complex last night.

Also present were Malaysian National News Agency (Bernama) chief executive officer Datin Paduka Nur-ul Afida Kamaludin, editor-in-chief Arul Rajoo Durar Raj, and economic news service executive editor Saraswathi Muniappan.

Anwar added that the plan underscores Malaysia’s leadership in driving Asean’s energy cooperation and integration, aligning with its 2025 Asean Chairmanship goals of economic resilience, regional connectivity, and sustainable development.

A key enabler of this expanded energy vision is the resolution of long-standing jurisdictional issues between national oil company Petroliam Nasional Bhd (Petronas) and Sarawak’s state energy firm Petroleum Sarawak Bhd (Petros).

Earlier yesterday, the Federal government and the Sarawak state government signed a joint declaration at Perdana Putra, marking a milestone agreement on energy cooperation between Petronas and Petros.

It was signed by Anwar and Sarawak Premier Tan Sri Abang Johari Openg.

The Prime Minister said the agreement reflects mutual recognition of key legal frameworks, with Sarawak accepting the Petronas Development Act (PDA) 1974, and Petronas acknowledging Sarawak’s Distribution of Gas Ordinance (DGO) 2016 and its by-laws, effectively positioning Petros as the gas aggregator for the state.

Under the understanding, Petronas will continue fulfilling its international obligations, while new operations in Sarawak will require commercial agreements that safeguard the state's domestic supply needs.

“It is only fair for the Sarawak government to ensure gas supply for its people is guaranteed,” he said.

Anwar also praised the Sarawak leadership, especially Abang Johari, for taking a pragmatic and constructive stance throughout the negotiations.

“To be fair to Sarawak Parties Alliance (GPS) and the Premier, he has never been unreasonable. He allowed negotiations to proceed and respected the roles of both entities.

"That is what allowed us to reach this understanding,” he said, adding that although the deal may be viewed as controversial in some quarters, the spirit of consensus must prevail.

“There is a national company and a state company. One is owned by the Federation, one by the state. We must work together, and I represent not only Malaya but also the interests of Sarawak. Give it some time; wisdom and sanity will prevail. I think that is working,” he said.

As the chair and host of Asean 2025, Malaysia will host the 46th Asean Summit and Related Summits at the Kuala Lumpur Convention Centre (KLCC) from May 26 to May 27.

In conjunction with the summit, two key high-level meetings — the 2nd Asean-Gulf Cooperation Council (GCC) Summit and the Asean-GCC-China Summit — will also take place, marking an important platform for expanded regional and inter-regional cooperation.

— Bernama

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