KUCHING: Prime Minister Datuk Seri Anwar Ibrahim’s proposal for Sarawak to supply excess electricity to the southern Philippines via Sabah presents several potential benefits and challenges for local businesses and the regional energy market.
Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) secretary-general Datuk Jonathan Chai highlighted that Sarawak’s abundant renewable energy resources, particularly hydropower, have already made it an attractive destination for foreign direct investment (FDI).
He noted that the Samalaju Industrial Park, for instance, has secured substantial foreign investments, attracting major energy-intensive industries such as aluminium smelting and ferroalloy production.
“The availability of reliable and competitively priced green energy is a significant draw for industries aiming to reduce their carbon footprint.
“Expanding electricity exports can further enhance Sarawak’s reputation as a regional energy hub, potentially attracting more investors seeking sustainable energy solutions,” he told Sarawak Tribune.
Given this, he foresees that exporting electricity will allow Sarawak to diversify its economy beyond traditional sectors like oil and gas, timber, and palm oil.
This move, he said, can generate additional revenue streams that can be reinvested into local infrastructure, education, and healthcare, thereby stimulating broader economic development.
Moreover, Chai said supplying electricity to neighbouring regions aligns with the vision of an integrated ASEAN power grid.
“This integration can open new markets for local energy companies and service providers, fostering regional collaboration and economic growth,” he said.
Furthermore, transmitting electricity over long distances will necessitate the development of robust transmission infrastructure.
“Local companies specialising in construction, engineering, and maintenance can capitalise on these projects.
“Of course, there will be challenges in this endeavour. Cross-border energy trade involves navigating different regulatory frameworks, which can be complex and time-consuming.
“Ensuring compliance and harmonisation of standards will require meticulous planning and collaboration between governments and agencies,” he said.
Additionally, he emphasised the importance of maintaining a consistent and reliable electricity supply to meet both domestic and export demands.
Therefore, he suggested that Sarawak Energy Berhad invest in technology and infrastructure to prevent disruptions and manage peak loads effectively.
He also highlighted several sectors that stand to benefit from the electricity export initiative, including infrastructure, manufacturing, and technology services.
“The development of infrastructure, including transmission lines, substations, and grid interconnections, will require significant investment.
“This will create opportunities for local construction firms, equipment manufacturers, and engineering service providers,” he said.
Chai noted that in manufacturing, increased energy availability could attract more manufacturers, particularly those in energy-intensive industries, to set up operations in Sarawak.
“This influx of investments will contribute to economic growth and create job opportunities for the local workforce.”
In terms of technology services, he said managing cross-border energy distribution will require advanced technological solutions such as smart grid systems, real-time monitoring, and cybersecurity measures.
“This presents a new market for companies specialising in energy technology and digital solutions,” he said.
Overall, Chai expressed optimism that the electricity export initiative would bolster Sarawak’s position as a regional energy hub while fostering economic diversification.
“While challenges exist, proactive measures and strategic planning can enable local businesses to capitalise on the myriad opportunities this initiative presents,” he said.
For the record, it was reported that Anwar 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 1,500 MW.
“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.
