Malaysia and Singapore are making ambitious strides towards environmental sustainability. Given their close economic ties and geographical proximity, the two countries are ideally positioned to collaborate by leveraging their respective strengths in renewable energy (RE). Finance & Projects Partners Mark Lim and Faez Abdul Razak in Kuala Lumpur (Malaysia) and Kim Hock Ang in Singapore discuss the opportunities and challenges in this commentary for The Edge Malaysia.
• Malaysia aims to reduce its greenhouse gas emissions intensity by 45% by 2030 and achieve net-zero emissions by 2050, leveraging its abundant solar and hydro resources to position itself as a clean energy leader in Southeast Asia. Similarly, Singapore, despite its limited renewable energy options, targets a reduction in greenhouse gas emissions by 36% by 2030 and net-zero emissions by 2050. This creates opportunities for investment.
• National Energy Transition Roadmap (NETR): Launched in late 2023, the NETR is a comprehensive plan outlining Malaysia’s transition to clean energy. It includes ten flagship projects across various sectors, including energy efficiency, renewable energy, and hydrogen and carbon capture. These initiatives, which require substantial investments (estimated to be over RM25 billion), present significant opportunities for regional investors including those from Singapore.
• Cross-border electricity import plans: Announced by the Singapore Energy Market Authority in 2021, these plans aim to import up to 4GW of low-carbon electricity by 2035. A notable early success was the agreement between YTL PowerSeraya and TNB Genco for a 100MW supply from Malaysia, seen by many as a precursor to larger transactions with a focus on RE facilitated by platforms like Enegem.
• The synergistic potential between Malaysia and Singapore in the RE sector is the cornerstone for regional energy security and sustainable economic growth. By overcoming existing barriers and capitalizing on each other’s strengths, both countries can significantly advance their green agendas.
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