KUALA LUMPUR, 17 October 2025 – Malaysia and Singapore are taking a major step forward in strengthening regional energy cooperation, with Tenaga Nasional Berhad (TNB), SP Group, and Singapore Energy Interconnections (SGEI) signing a Joint Development Agreement (JDA) to explore the feasibility of a second electricity interconnection between Peninsular Malaysia and Singapore.
The proposed link, which could have a capacity of up to 2,000 megawatts (MW), is slated for operation by 2030 and will play a key role in enhancing energy security, grid resilience, and renewable integration across both nations.
The signing ceremony took place on the sidelines of the 43rd ASEAN Ministers on Energy Meeting (AMEM) here. The JDA was signed by Datuk Ir. Megat Jalaluddin Bin Megat Hassan, President and Chief Executive Officer of TNB; Jimmy Khoo, Chief Executive Officer of SP PowerGrid; and Ong Teng Koon, Chief Executive Officer of SGEI.
The event was witnessed by Datuk Amar Haji Fadillah bin Haji Yusof, Malaysia’s Deputy Prime Minister and Minister of Energy Transition and Water Transformation, and Dr Tan See Leng, Singapore’s Minister-in-charge of Energy and Science & Technology.
Under the agreement, the three partners will jointly conduct a comprehensive feasibility study to assess the technical and commercial viability of the second interconnection. The effort builds upon a pre-feasibility study completed in May 2025 by SP Group and TNB, which confirmed that no major technical barriers exist for implementation.
“TNB, Malaysia’s leading electricity utility, is committed to strengthening regional energy cooperation in support of the ASEAN Power Grid (APG). The upcoming feasibility study for the second Malaysia–Singapore interconnection is a crucial step towards expanding cross-border electricity trade,” said Megat Jalaluddin.
“This initiative not only strengthens energy security but also supports Malaysia’s National Energy Transition Roadmap by enabling greater integration of renewable energy.”
Stanley Huang of SP Group, said, “As Singapore’s grid operator, SP Group remains committed to strengthening our power infrastructure to support regional grid connectivity. This study will serve as a platform for closer collaboration with Malaysia to enhance energy security through diversified low-carbon energy sources.”
Meanwhile, Ong of SGEI, said, “Singapore Energy Interconnections is pleased to partner with TNB and SP Group to conduct a full feasibility study for a second interconnection to strengthen energy connectivity between Singapore and Malaysia. This collaboration reflects our shared commitment to enable electricity trade and greater grid resilience between both countries.”
The JDA marks an important milestone in Malaysia–Singapore energy collaboration, reinforcing bilateral ties and advancing regional integration under the ASEAN Power Grid (APG) initiative.
The first interconnection, established in 1983 primarily for mutual energy support, was upgraded in 2022 to allow bi-directional electricity flows of up to 1,000 MW. It currently facilitates cross-border power trade through the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP) and the Energy Exchange Malaysia (ENEGEM) pilot project.
The proposed second interconnection will further enhance grid reliability, enable greater exchange of renewable energy, and strengthen Southeast Asia’s position as a hub for sustainable power trading. It also aligns with both nations’ long-term vision of achieving a low-carbon, interconnected regional energy network by 2030.
