During the Singapore-Malaysia Leaders’ Retreat in October 2023, Singapore’s Prime Minister Lee Hsien Loong and Malaysia’s then-prime minister Anwar Ibrahim expressed a willingness to collaborate on renewable energy initiatives. Both leaders emphasized the importance of moving towards a low-carbon and sustainable future, with a focus on cross-border electricity trading. The Borneo state of Sarawak has plans to become a major exporter of green energy, aiming to provide up to one gigawatt of renewable energy to Singapore by 2032 without affecting its own domestic supply.
The memorandum of understanding between Malaysia and Singapore on the Special Economic Zone (SEZ) includes a specific focus on collaboration in the field of renewable energy and green technology. Johor state government representatives have highlighted the potential of integrating renewable energy sources such as solar, biomass, and hydrogen into the industrial infrastructure, particularly in the Pengerang area. The ample land and high solar insolation in Pengerang make it an ideal location for solar energy projects, aligning with global trends towards sustainable energy solutions and attracting investments in renewable energy.
NUS Associate Professor Lee noted that the Johor state government is interested in diversifying its energy portfolio, with plans to develop solar farms as part of the third phase of the Pengerang Industrial Petroleum Complex (PIPC) development. This strategic move towards sustainable energy solutions could attract investments from companies focusing on renewable energy. Solar insolation, which refers to the amount of solar radiation received on a surface over time, presents significant opportunities for solar energy projects in the region.
While there is optimism about Pengerang’s potential to serve as an oil and gas hinterland for Singaporean companies, experts emphasize the need to improve accessibility to the area. Currently, Pengerang is an 80-minute drive from Johor Bahru city center and the Woodlands Causeway, which may be considered a long journey from Singapore compared to other industrial areas in the planned SEZ. Ferry services between Tanah Merah in Singapore and Desaru Coast in Pengerang exist, but they are primarily catered to tourists and may not provide sufficient access for smooth flow of workers and cargo.
Efforts to improve accessibility to Pengerang must be prioritized to support the region’s potential as a hub for renewable energy initiatives and collaborations between Malaysia and Singapore. Enhancing transportation infrastructure, including roadways and ferry services, will be essential for facilitating the efficient movement of personnel and resources between the two countries. By addressing these accessibility challenges, both Singapore and Malaysia can leverage Pengerang’s strategic advantages in renewable energy resources to achieve their shared goals of sustainable development and cross-border cooperation in the energy sector.
