The Prime Ministers of Malaysia and Singapore have discussed the possibility of Malaysia selling electricity to Singapore.
This was announced by Malaysian Prime Minister Najib Razak during a joint news conference with his Singapore counterpart Mr Lee Hsien Loong at the end of the third leaders’ retreat between the two countries.
Mr Najib said if the plan comes to fruition, it will be a private sector-driven initiative.
Responding to this, Prime Minister Lee said Singapore is very open to importing a certain portion of electricity from Malaysia, if the terms are right and if the private sector proposes an attractive offer which Singapore cannot refuse.
Mr Lee said: “Singapore is very open to importing a certain proportion of our electricity. If the terms are right, this provides us with an attractive offer which we can’t refuse.
Of course, we’ll be happy to buy, subject to proper terms and safeguards. We’re in the process of working out a proper framework for managing these imports of electricity. And once this framework is ready, we welcome Malaysian companies to participate and bid to supply electricity to Singapore. We hope, of course, that some of them will succeed.”
However, he stressed that the offer has to be in accordance with proper safeguards.
Mr Lee said in reaching a decision on the matter, Singapore will need also need to study the environmental impact of power generation companies.
Mr Lee said: “When you supply electricity, there’s also the consideration of environmental impact of the power generation companies.
If you’re burning fossil fuels, particularly coal, you have to make sure there’s environmental controls to prevent sulphur dioxide or ash or other problems to the environment.
“That’s something we’ll be taking seriously in mind. It affects, of course, the immediate neighbours of the power station but there could be cross-border implications as well.”
The leaders also proposed that their countries explore industrial cooperation in the Iskandar Malaysia development region in Johor.
They directed a new work group on industrial cooperation to look for more ways to enhance collaboration that will benefit both sides.
The leaders said they’re pleased with the collaboration between Khazanah Nasional and Temasek Holdings through joint investments in M+S Pte Ltd.
The company has submitted the design for the Marina South and Ophir-Rochor developments for planning approval.
The delegations have completed the retreat meeting.
