Sunday, December 7, 2025

Malaysia Delays Power Deal Amid Thai Political Shift

ASEAN power Grid expansion Faces Temporary Delay Due to Thai ‌Political Shift

KUALA ⁤LUMPUR: progress on a key Southeast Asian power⁣ trade agreement is experiencing a slight delay due to recent political changes in Thailand, Malaysia’s Energy Transition and Water Transformation Minister Fadillah Yusof stated Friday (October 17).

The Lao PDR-Thailand-Malaysia-Singapore (LTMS) Project, focused ⁤on supplying hydropower from Laos through Thailand and Malaysia, is now anticipated ‌to be renewed in November, according‍ to Fadillah, who spoke with reuters on the sidelines of the ASEAN energy ministers’⁤ meeting.

The delay stems from a change in Thailand’s leadership. Prime Minister Paetongtarn Shinawatra was removed by‌ the Constitutional Court​ in‌ August, and Anutin Charnvirakul was subsequently appointed as Prime Minister in September.

“It’s not put‍ on hold, but because of the political changes in the (Thai)⁣ government…that’s why ⁣there’s a bit of a delay on Thailand’s side,” Fadillah explained. He confirmed Malaysia remains committed to ⁢the project and expects the second phase of LTMS to be ​operational after the signing, anticipated in November. Thailand’s energy ministry has ⁤not yet responded‍ to a request for comment.

The LTMS project serves as a foundational​ element for the broader ASEAN Power Grid (APG) initiative, a plan to interconnect all ten ASEAN⁤ member states. Fadillah emphasized the importance ‍of‍ the APG, stating, “APG is the backbone of ASEAN. If we⁣ want to be one of the economic powerhouses in​ the world, we need energy.”

Alongside the LTMS project, significant advancements are being made on the Borneo power Grid.​ Fadillah announced that Sabah is expected ‌to be connected to Sarawak by the ⁣end of this year. West Kalimantan is already importing power⁤ from Sarawak, and Brunei’s connection is currently in progress, with the Philippines slated to join the‍ grid in the future.

Malaysia is also actively ⁣working to ‌decrease its dependence on coal and increase its renewable energy capacity. The country forecasts a 10% and 8% rise in power demand in 2026 and 2027, respectively, driven by the growth ‍of data centers and high-demand industries.

In related news, ⁣Laos is considering curtailing electricity supply ‍to cryptocurrency miners to prioritize power allocation ​to industries‍ contributing more significantly to economic growth, according to the country’s deputy energy minister.

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