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Malaysia and Singapore enhance electricity trade

Newsflash Asia

- October 20, 2025

Malaysia and Singapore have announced the development of two new interconnections to facilitate cross-border electricity trade. This initiative, revealed on 17 October, aims to enhance energy security and sustainability for both nations. The interconnections will allow for the exchange of up to 100 megawatts of electricity, significantly increasing the capacity for energy trade between the two countries.

The new infrastructure is expected to be operational by 2025, marking a significant step in regional energy cooperation. The interconnections will not only bolster energy security but also support Singapore’s transition towards a low-carbon energy future. By integrating more renewable energy sources, both countries aim to reduce their carbon footprints and contribute to regional sustainability goals.

A spokesperson from the Ministry of Trade and Industry highlighted the importance of this development, stating, “These interconnections will enhance the resilience of our power systems and support our climate change commitments.”

The project underscores the growing trend of regional collaboration in energy markets, as countries seek to optimise resources and improve energy efficiency. The increased capacity for electricity trade is expected to provide economic benefits, including potential cost savings for consumers and businesses.

As the project progresses, both governments will continue to work closely to ensure the successful implementation and operation of the interconnections. This collaboration sets a precedent for future cross-border energy projects in Southeast Asia, promoting a more integrated and sustainable energy landscape.

This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.

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