Malaysia and Laos sign agreement to resume power transmission to Singapore through regional grid infrastructure

Malaysia MYstate-run utility Tenaga Nasional Berhad 5347.KLhas formally signed a two-year Energy Wheeling Agreement Phase 2 on January 14, 2026, to facilitate the transmission of electricity from Laos LAto Singapore SG. Under the terms of the deal reached with Electricite Du Laos, the utility will transmit up to 100 megawatts of generation capacity using existing infrastructure across Thailand THand Malaysia.\n\nThis agreement marks the start of the second phase of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, a multilateral initiative that had been stalled since June 2024. The first phase of the project, originally signed in 2022, reached its expiration on June 22, 2024, after its two-year validity period ended.

In October 2025, the energy minister of Malaysianoted that the delay in renewing the transmission deal was caused by local political changes in Thailand.\n\nThe resumption of power trade through the wheeling arrangement, where Electricite Du Laos will pay Tenaga Nasional Berhadfor the use of its services, is viewed as a concrete advancement for the ASEAN Power Grid initiative. This broader regional effort aims to eventually connect the power systems of all ten member states to improve energy security and manage the growing reliance on fossil fuels. By utilizing existing transmission links in Thailandand Malaysia, the project demonstrates the feasibility of cross-border energy integration between Laosand Singapore.