KUALA LUMPUR: Malayan Banking Bhd
(Maybank), DBS Bank Ltd, the International Finance Corporation and project sponsor Ditrolic Energy Holdings Sdn Bhd have formally exchanged the Southern Johor Renewable Energy Corridor (SJREC) Project Bankability and Financing Framework Memorandum at the 19th Singapore International Energy Week 2026.
In a joint statement, the parties said the milestone agreement establishes a collaborative framework designed to strengthen the bankability and financial readiness of the ambitious cross-border clean energy project, marking a key step forward in Malaysia-Singapore renewable energy cooperation.
Representing a US$6bil investment in solar and battery storage infrastructure across Johor, the SJREC project is co-developed by Ditrolic Energy and Permodalan Darul Ta’zim (PDT), the strategic investment arm of the Johor state government.
Ditrolic Energy has also forged a separate collaboration agreement with the IFC to support the initiative. The project achieved a major operational milestone in August 2026 when Ditrolic Energy’s wholly-owned subsidiary, Southern Solar Alliance Pte Ltd, secured conditional approval from Singapore’s Energy Market Authority to import up to 600MWac of renewable electricity from Johor to Singapore.
The development is currently moving toward key milestones including contracting, licensing, permitting, and the Final Investment Decision (FID).
By uniting multilateral and commercial financial institutions early in the development lifecycle, the new memorandum creates a joint working group tasked with establishing dedicated bankability criteria for cross-border power projects.
This working group will evaluate critical project pillars including regulatory pathways, grid interconnection, power offtake structures, risk allocation, environmental and social standards, and overall financing mechanics to streamline the path to financial close.
Beyond supporting the immediate development of SJREC, the framework is intended to serve as a scalable model for structuring and financing future cross-border clean energy initiatives under the broader ASEAN Power Grid.
"Reliable access to renewable energy is becoming increasingly important in attracting investments, particularly in energy-intensive industries. SJREC has the potential to connect Johor’s renewable energy resources with businesses in Malaysia and Singapore, supporting decarbonisation and strengthening the Johor-Singapore Special Economic Zone’s appeal as an investment destination," said Maybank global banking group CEO Datuk John Chong.
Tham Chee Aun, group CEO of Ditrolic Energy, said close to 90% of its green energy is seeing capacity booking interest. "By bringing DBS, IFC and Maybank to the table well ahead of FID, and working closely with governments, regulators and offtakers, we hope to set a reference framework for financing future ASEAN Power Grid projects.”
