The initial stage comprises the construction of a subsea power cable and the development of offshore wind capacity.
Datuk Seri Fadillah Yusof explained that 700 MW will address Malaysia’s local energy requirements, with the remaining 1,300 MW allocated for export to Singapore. The minister highlighted the project’s compatibility with the ASEAN Plan of Action for Energy Cooperation (APAEC), noting its value in promoting cross-border energy initiatives.
Datuk Seri Fadillah Yusof stated: “The project aligns with the ASEAN Plan of Action for Energy Cooperation (APAEC), underscoring its significance for regional energy collaboration.”
The project, which gained Cabinet approval in principle on May 21, 2025, will proceed in two stages. The opening phase includes building a subsea cable from Vietnam to Kelantan, Malaysia, and establishing the offshore wind infrastructure.
Fadillah shared these updates in reply to a question from Datuk Mumtaz Md Nawi (PN–Tumpat) in the Dewan Rakyat.
The subsequent phase will depend on energy needs and economic reviews after the initial stage. It could extend transmission lines from Vietnam to Peninsular Malaysia via overland paths through Cambodia, Laos, and Thailand. Evaluations will follow the first phase’s results to determine viability.
Malaysia plans to reinforce its national grid to handle the additional power flow. Upgrades will target a route from Kelantan through Terengganu, Pahang, Negeri Sembilan, and Johor. These improvements are set to finish by 2030, ensuring efficient energy distribution.
This offshore wind effort represents a key step in ASEAN’s renewable energy strategy. By harnessing wind resources in shared waters, it supports sustainable power generation and enhances regional interconnections. The project will help meet growing demand while reducing reliance on traditional fuels.
For Malaysia, the domestic allocation strengthens energy stability, while exports to Singapore foster mutual benefits. The subsea cable and grid enhancements will create a resilient network, capable of integrating more renewables in the future.
Partners across Vietnam, Malaysia, and Singapore are coordinating to align technical standards and timelines. This collaboration sets a model for future ASEAN energy projects, emphasizing shared infrastructure for collective progress.
As implementation begins, the corridor promises economic opportunities, including job creation in construction, maintenance, and operations. It also advances environmental goals by cutting emissions and promoting clean energy adoption throughout Southeast Asia.
The initiative bolsters ASEAN’s position in global renewables, attracting investment and technology transfers. With phased development, it ensures steady progress toward a greener energy landscape, benefiting communities and economies alike.
