Malaysia and Singapore Form Working Group to Align Renewable Energy Certificate Rules

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Malaysia-Singapore energy certificate cooperation

Highlights

Energy authorities in Malaysia and Singapore have established a joint working group to harmonize cross-border renewable energy certificate (REC) regulations.
The new memorandum of understanding facilitates cross-border electricity trading and enables a sustainable energy transition between Malaysia and Singapore.
Singapore has granted conditional approval for Sembcorp Utilities to import 1.3 gigawatts of renewable energy from and through Malaysia, strengthening regional energy trading.

This article was translated from the original. Read the original version by our correspondent here.

Regulatory cooperation and the REC framework

As reported by The Edge Malaysia, energy authorities in Malaysia and Singapore have established a joint working group to harmonize their approaches to tracking and accounting for renewable energy certificates, or RECs. RECs are tradable credits representing the environmental attributes of one megawatt-hour of electricity generated from eligible green sources, and demonstrate that the certificate holder uses renewable energy.

Siti Safinah Salleh, chief executive officer of Malaysia’s Energy Commission, said in a statement that close cooperation between regulators is important to support a safe and reliable electricity supply, facilitate cross-border electricity trading, and enable a sustainable energy transition. The move is part of a renewed memorandum of understanding between Malaysia’s Energy Commission and Singapore’s Energy Market Authority to further strengthen bilateral cooperation in the energy sector. It was signed on the sidelines of Singapore International Energy Week 2026.

Malaysia currently does not allow domestic RECs to be sold overseas. The country has more than eight gigawatts of installed renewable energy generation capacity, including solar, hydropower, and other alternative sources.

Implications for regional energy trading

Energy Market Authority chief executive Puah Kok Keong said that clarity around the REC framework across Southeast Asia would go a long way toward facilitating investment in renewable energy and encouraging renewable energy trading. Regulatory alignment could also reduce market uncertainty for companies seeking to source green electricity across borders.

Both countries continue to explore other opportunities for cross-border renewable energy sales, including imports of solar energy from Malaysia and offshore wind power from Vietnam. Singapore recently granted conditional approval to Sembcorp Utilities to import 1.3 gigawatts of renewable energy from and through Malaysia.

Our previous coverage of MIDA’s Renewable Energy Supply Chain Programme at IGEM 2026 highlighted how 25 local manufacturing and services companies were matched with TNB Genco and TNB Renewables to explore commercial opportunities in green energy projects. The initiative was presented as a way to strengthen domestic capabilities and increase local economic value as Malaysia accelerates its energy transition.

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