ASEAN Power Grid Project Needs Over US$50 Bln For Completion -- Fadillah

KUCHING, Sept 4 (Bernama) -- More than US$50 billion (US$1 = RM4.22) is needed to complete the ASEAN Power Grid project, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also Minister of Energy Transition and Water Transformation, said the existing financing support from international banks remains insufficient to complete the project. 

He said the World Bank has allocated US$2.5 billion, while the Asian Development Bank has set aside US$10 billion to support the initiative.

“The challenge is always the financial and business model needed to attract more investors,” he told reporters after attending the closing plenary session of the Sustainability and Renewable Energy Forum (SAREF) 4.0 here, today.

The ASEAN Power Grid initiative is a flagship regional project aimed at enhancing energy security, sustainability and integration among member states.

At the session, Fadillah outlined Malaysia’s vision for a sustainable and resilient energy future ahead of the 43rd ASEAN Ministers on Energy Meeting (AMEM), with Malaysia chairing ASEAN this year.

The deputy prime minister added that, beyond the multilateral lenders, private sector investors from regions such as the Middle East, Japan, and China have expressed interest in the project.

“This will be the new growth for ASEAN as it brings investment, job opportunities and business opportunities for the entire region,” he said.

On the project’s financing structure, Fadillah explained that governments would play only a facilitating role, while the private sector would determine the commercial model.

“For example, in the case of Singapore, it will likely take the lead, as it is the one with the demand. The details, such as underwriting and business concepts, will be left to the business community,” he said.

Fadillah said as Indonesia prepares to shift its capital to Nusantara, Malaysia is stepping up efforts to strengthen cross-border interconnectivity and energy security, with the Borneo Grid emerging as a cornerstone of this strategy.

Regarding Borneo and Sarawak’s role in the power grid project, he said vast hydropower resources are being harnessed to reinforce Malaysia’s national grid and provide clean electricity to neighbouring countries.

“The Borneo Grid is more than just an energy project... it is proof that Malaysia can lead in shaping an integrated, sustainable energy future for the region,” he said.

Fadillah added that with Nusantara being established across the border, Malaysia is positioning Sarawak and Borneo not only as energy providers but also as drivers of a greener and more interconnected ASEAN.

-- BERNAMA