Electricity trading, renewable energy among new areas of Singapore-Malaysia cooperation

PUTRAJAYA – Singapore and Malaysia are looking to expand cooperation into areas such as electricity trading and renewable energy cooperation.

This is on top of existing infrastructure projects such as the

Johor-Singapore Special Economic Zone (JS-SEZ)

for business and investment, and the

Johor Bahru-Singapore Rapid Transit System (RTS) Link

, which is slated to start operations by end-2026.

Speaking to Singapore media on Jan 7 at the end of the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya, Malaysia, Prime Minister Lawrence Wong said one major project in the works is the

import of electricity from Sarawak via undersea cables.

This would build on positive momentum from the increase in capacity of the 

Lao PDR-Thailand-Malaysia-Singapore Po­wer Integration Project

. The inaugural flow from Malaysia to Singapore began in September 2024, with almost 8,000 megawatt-hours (MWh) of electricity being traded to date under phase two of the project.

Besides the JS-SEZ agreement, six memorandums of understanding and a letter of intent were exchanged on Jan 7 at the Leaders’ Retreat, where PM Wong was hosted by Malaysian Prime Minister Anwar Ibrahim. Areas covered included carbon storage and capture and carbon credits cooperation.

The annual retreat is a platform for leaders of both countries to set the overall direction for bilateral cooperation.

The RTS Link is also making good progress and on track for completion, PM Wong said. When ready, it can carry up to 10,000 people an hour in each direction between Bukit Chagar and Woodlands North, easing congestion on the Causeway.

PM Wong was asked about the RTS Link’s potential impact on Singapore businesses.

He said he has heard concerns, especially from businesses in the Woodlands area, that more Singaporeans will shop in Johor when the RTS is operational.

But disruption to retail businesses is already happening, with competition either physically or online, PM Wong said.

“It’s too early to tell how it will impact business because perhaps it will mean more Singaporeans going over to Johor for shopping, but it can also mean... more Malaysians coming to Singapore,” he said, noting that a lot of the businesses in the north already cater to that Malaysian traffic, particularly day-trippers coming into Singapore to work.

“So what’s clear is, whether we have the RTS or not, the nature of business is constantly changing,” he said.

The Government will continue to support heartland businesses and encourage them to think of new business models and offerings to enlarge their market, he said, adding that they can also expand online and attract new customers.

“There will always be new models, new competition, new disruptions, and businesses have to adapt to all of that... You have to adapt, you have to adjust, you have to update your offerings in order to appeal to new customers.”