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Malaysia’s Strategic Energy Expansion Through Sabah and Sarawak

By Datuk Seri Panglima Wilfred Madius Tangau
Sabah Electricity Chairman Tuaran MP
Honorary President of UPKO

Recently, Prime Minister Datuk Seri Anwar Ibrahim has proposed that Sarawak supply its excess electricity to the southern Philippines via Sabah starting next year.

Now, from Sabah’s energy perspective, this suggestion aligns with Malaysia’s broader vision of strengthening regional energy cooperation and maximizing the utility of surplus power generation in Borneo.

With Sarawak Premier Datuk Patinggi Tan Sri AbangJohari Tun Openg’s recent announcement on the state’s plan to supply energy to Sabah by 2026, Sabah stands to gain immensely from Sarawak’s growing energy sector.

This initiative is poised to enhance Sabah’s infrastructure, stimulate economic growth, and reinforce the state’s power generation capacity, ensuring greater stability and reliability in electricity supply.

From our side of this agreement, preparations have long been underway.

The Sabah Grid, which will facilitate the interconnection with Sarawak, has already been completed on Sabah’s end. The remaining work lies in Sarawak’s completion of its section.

This project has been in progress since the signing of the power sales and purchase agreement between the two states, which shows a strong commitment to the energy alliance.

The integration of both grids will not only boost power generation capacity but also contribute to greater stability and efficiency in Sabah’s electricity supply.

Prime Minister Datuk Seri Anwar Ibrahim’s request for Sarawak to channel energy to the southern Philippines is very much welcomed, as it positions the Borneo states as key players in the regional energy sector.

Such a move would not only generate economic returns but also accelerate grid connectivity between our two states, making it easier to engage in further energy exports.

Currently, Sabah and Sarawak have an agreement to begin with a supply of 30MW, with plans to increase the capacity to 50 MW after five years once the grid connection is fully established.

However, we are also considering increasing the capacity up to 100MW in the future which is in line with Sarawak’s capabilities to provide power.

For this plan to materialize efficiently, the completion of Sabah’s Southern Grid, popularly known as the Southern Link, needs to be completed first.

For the record, 60 KM of this Southern Link which will link hydro generations in the Upper Padas areas to the 275KV grid in Sipitang is in the process of tender by Sabah Electricity.

The effort after this is to do the rest of the Southern Link which will connect Tenom and Tawau.

This project, once finished, will establish a 330 KM power transmission network stretching from Sipitang to Tenom, Kalabakan, Tawau and Semporna.

Only from there the necessary grid to connect Sabah to the Southern Philippines can be done.

Obviously, it is a strategic step aimed at strengthening power supply capacity and regional energy stability.

What makes this even more significant is the long-standing, sibling-like bond between Sabah and Sarawak, built on mutual cooperation across various sectors, including energy.

This project further cements that relationship, nurturing greater interdependence and trust.

By working together, both regions can leverage our respective strengths to form a more sustainable and efficient energy landscape, not only for Malaysia but for the broader ASEAN region as well.

On the Kalimantan side Sabah represented by Sabah Electricity has already signed a Memorandum of Understanding (MOU) with Kalimantan represented by Perusahaan Listrik Negara (PLN) Indonesia as part of the ASEAN Grid.

From Sarawak’s end, the electricity designated for export will be generated from a 500 MW combined cycle gas turbine power plant in Miri, supplemented by three other plants in Bintulu, which have a combined capacity of 1,500MW.

Beyond that, we know that Sarawak is actively developing new sources of energy, including synthetic gas, positioning itself as a major energy producer in the ASEAN region.

This level of energy production not only ensures sustainability but also underlines Sarawak’s long-term vision of becoming a key contributor to the ASEAN energy grid.

If Sarawak can successfully leverage its energy resources for regional distribution, Sabah should also align its strategy to achieve similar ambitions.

The broader implication of this initiative is its alignment with ASEAN’s regional energy framework, namely the ASEAN Grid.

By facilitating cross-border electricity trade, Sabah and Sarawak contribute to ASEAN’s vision of an interconnected power grid, enhancing energy security and promoting economic integration.

The energy trade with the southern Philippines, if successfully implemented, could serve as a model for future energy-sharing initiatives across the region.

The Prime Minister’s proposal for Sarawak to supply electricity to the southern Philippines via Sabah marks a strategic move that benefits multiple stakeholders.

Sabah gains improved energy infrastructure and economic opportunities, while Sarawak strengthens its position as a regional energy leader.

This collaboration stresses the importance of strong inter-state relations and forward-thinking energy policies, ultimately contributing to Malaysia’s and ASEAN’s long-term energy sustainability goals.

Moving forward, the successful execution of this plan will depend on timely infrastructure development, regulatory alignment, and continued cooperation between Sabah, Sarawak, and the federal government.

If executed well, this initiative could be a significant step toward a more interconnected and resilient regional energy network.

The commitment of stakeholders at every level will determine the success of this ambitious project.

With the right policies, investment, and collaboration, Sabah and Sarawak can become key drivers of regional energy integration, ensuring long-term sustainability and economic growth for both Malaysia and its neighbours.

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