KUCHING: The proposal for Sarawak to export electricity to the southern Philippines presents a significant economic opportunity for the state.
Universiti Malaysia Sarawak (UNIMAS) Senior Lecturer Dr Dzul Hadzwan Husaini explained that Sarawak, with its abundant electricity reserves — particularly from hydropower — can optimise energy utilisation by selling excess capacity to neighbouring countries.
“This move not only ensures efficient use of existing infrastructure but also improves Malaysia’s trade balance by offsetting energy imports,” he told Sarawak Tribune.
He further assured that, from an energy security perspective, exporting surplus electricity does not threaten local supply stability.
“Instead, the revenue generated can be reinvested in infrastructure improvements, further strengthening Sarawak’s energy resilience.
“Additionally, cross-border electricity trade can drive economic growth by creating new jobs and attracting foreign investments into the energy sector,” he said.
He added that this initiative aligns well with ASEAN’s broader energy integration strategy, which aims to enhance regional energy security and cooperation.
Geopolitically, he views the risk as minimal, as the Philippines would depend on Sarawak’s electricity supply, positioning Malaysia as a key energy provider in the region.
“This project serves as a stepping stone for Sarawak to expand its electricity exports to other ASEAN markets, including Singapore, Brunei, and Kalimantan.
“The growing population and economic development in Kalimantan — particularly with Indonesia’s plan to relocate its capital to Nusantara — present a major opportunity for Sarawak to establish itself as a crucial energy supplier in the region.
“By capitalising on this demand, Sarawak can further strengthen its role in international trade and economic integration,” he said.
Despite these benefits, Dzul noted that several financial and infrastructure challenges must be addressed to ensure the initiative’s long-term success.
While existing infrastructure may be sufficient for the initial phase of exports to the southern Philippines, expanding into new markets will require significant investments in transmission networks, grid stability measures, and regulatory frameworks.
In addition, he emphasised the importance of establishing a well-structured Power Purchase Agreement (PPA) to secure long-term revenue stability and ensure fair pricing for electricity exports.
“Additionally, Sarawak must implement risk management strategies to mitigate external challenges such as policy changes, currency fluctuations, and technical disruptions.
“Public perception must also be carefully managed to ensure that electricity exports do not lead to increased local energy prices.
“Transparent policies and clear communication with stakeholders will be essential in maintaining public and political support for this initiative,” he said.
For the record, Prime Minister Datuk Seri Anwar Ibrahim has proposed the possibility of Sarawak supplying excess electricity to the southern Philippines via Sabah as early as next year.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the electricity would be generated from a 500-megawatt (MW) combined-cycle gas turbine power plant in Miri, along with three other plants in Bintulu with a combined capacity of 1,500MW.
“Our excess supply of electricity will be sent to Sabah, and the prime minister has asked us to extend it from Sabah to the southern Philippines, meaning we are supplying energy within ASEAN. This is our strength,” he said.
