Out-Law News 1 min. read
New deal exploring renewable exports from Vietnam to Singapore and Malaysia a ‘milestone’
03 Jun 2025, 11:26 pm
A new deal to explore renewable energy exporting from Vietnam to Singapore and Malaysia is a further milestone in cross-border energy collaboration, according to experts.
The deal, inked at the Association of Southeast Asian Nations (ASEAN) summit on May 26 by leaders of the three countries, will mean that Malaysia, Singapore and Vietnam will collaborate on a new subsea cable to Malaysia and eventually to Singapore that would allow Vietnam to export power, primarily from offshore wind.
David Clinch, an expert in energy and natural resources transactions at Pinsent Masons, said: “The joint development agreement signed on 26 May by Malaysia's MY Energy Consortium, Vietnam's PTSC, and Singapore's Sembcorp Utilities marks a further step in cross-border renewable energy collaboration in ASEAN, something that has been considered for a long time.”
“This partnership should assist with examining regional energy transition options hoping to tap into Vietnam’s offshore wind power to supply clean energy to Malaysia and Singapore, expanding broader efforts to the feasibility of a broader ASEAN Power Grid.”
The feasibility of the exporting of power will be evaluated before any final agreement is discussed or agreed. A recent decree by the Vietnamese government has created incentives for offshore wind projects as the country pursues the renewable energy source as a pathway to reach net-zero by 2050.
Bryan Chapman, an expert in project and infrastructure transactions at Pinsent Masons, said: “As regulatory approvals advance, key considerations will include permitting requirements, transmission infrastructure, and cross-border energy trading frameworks.”
“The addition of Malaysia introduces onshore transmission as a viable alternative to the previously proposed subsea pipelines from Vietnam to Singapore, further expanding the project’s scope,” he said.
“With ASEAN’s energy sector evolving rapidly, this collaboration reinforces the growing importance of legal and regulatory frameworks in facilitating international renewable energy investments.”
Singapore-based companies previously signed a letter of intent to import 1.2 gigawatts of low-energy from Vietnam from 2033 after Singapore’s Energy Market Authority approved the import of offshore wind energy in 2023.
The undersea pipeline is estimated to save nearly 1,000 kilometres of construction when compared to an overland route.
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