Clear cross-border rules key to Malaysia's regional power ambitions

KUALA LUMPUR: Malaysia's ambitions to expand regional electricity trade require clearer arrangements on cross-border approvals, financing and infrastructure protection to turn proposed subsea connections into workable projects.

Jomari Jesus Tan, a faculty member at the Department of Political Science, University of Santo Tomas (UST) in Manila, said Asean needed a collective framework covering the development and maintenance of subsea cables, alongside agreed responsibilities and safeguards for investment.

He said that respect for national sovereignty must be accompanied by greater regulatory certainty to help countries pursue connections across maritime boundaries.

"As such, a binding agreement on subsea cable development that encompasses development, maintenance, shared rights, as well as financing is paramount in transposing maritime disputes," he said.

Tan said this in an exclusive written interview with Bernama on the challenges facing regional energy connectivity ahead of the 49th Asean Summit and Related Summits in Manila this month.

Efforts to address those regulatory gaps are already on Asean's energy agenda.

The Asean Centre for Energy identified operationalising the Enhanced Asean Power Grid Memorandum of Understanding (MoU) and developing legal and regulatory guidelines for a regional submarine power cable framework among Asean's energy priorities for 2026.

Tan added maritime disputes and overlapping territorial claims could complicate cable routes, while competition involving external powers could create further uncertainty over financing and infrastructure security.

Clear security guarantees and liability provisions were therefore needed to define participating countries' responsibilities and give investors greater certainty, he said.

Without stronger regional coordination, Tan cautioned that countries risked pursuing separate infrastructure investments without adequate arrangements to connect them or share the costs.

"Fundamentally, Asean member states must then take a pragmatic approach regarding collective agreements that can boost the Southeast Asian economy; understanding the necessity of collective action as a regional bloc while also being wary of external states escalating tensions in contested waters," he said. — BERNAMA