As Malaysia eyes renewable energy exports to Singapore, can it stick to its ambitious energy goals?

Malaysia sees boosting renewable energy exports, principally to Singapore, as the logical way to fund its ambitious energy transition plans

But analysts urge the government to prioritise domestic consumption of renewable energy-based electricity, to put the economy on a greener footing

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Malaysia remains heavily reliant on coal and natural gas to power homes and industries. Photo: EPA-EFE

Published: 9:30am, 28 May 2023

Malaysia’s aspiration of exporting billions of dollars of renewables to Singapore must not undercut efforts to first reset its domestic economy onto a greener footing, experts have warned.

The country’s renewable energy (RE) policy received a reboot by Prime Minister Anwar Ibrahim’s administration earlier this month, which lifted a ban on the export of renewables to pay for the nation’s ambitious energy goals.

The government estimates it will need over 630 billion ringgit (US$138.4 billion) over the next three decades to raise the share of renewables to 70 per cent of its total power generation, which is currently dominated by coal and natural gas.

But with a steep national debt, limited infrastructure and gun-shy local investors, ramping up renewable energy exports – principally to Singapore – is seen by the government as the logical way to fund its own energy transition.

“The attraction of selling Malaysia-generated RE to Singapore is clear: Singapore has higher GDP per capita income and its strong currency improves the return on investment. Even so, this strategy is flawed,” said Nithi Nesadurai, regional coordinator for Climate Action Network Southeast Asia (Cansea).

The government should prioritise domestic consumption of renewable energy-based electricity, which would in turn lead to lower tariffs due to the cost advantage over fossil fuels, Nithi added.

“It will be ironic if Malaysia is not able to account for and inventorise its own RE-generated electricity locally because it is imported by Singapore,” he said.

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As Malaysia eyes renewable energy exports to Singapore, can it stick to its ambitious energy goals?

Malaysia sees boosting renewable energy exports, principally to Singapore, as the logical way to fund its ambitious energy transition plans But analysts urge the government to prioritise domestic consumption of renewable energy-based electricity, to put the economy on a greener footing

Malaysia sees boosting renewable energy exports, principally to Singapore, as the logical way to fund its ambitious energy transition plans

But analysts urge the government to prioritise domestic consumption of renewable energy-based electricity, to put the economy on a greener footing