Cyberjaya, 30 June 2025 –Dagang NeXchange Berhad (“DNeX”) has signed a Memorandum of Understanding (“MoU”) agreement with Sinohydro Corporation (M) Sdn Bhd (“Sinohydro Malaysia”), a wholly-owned subsidiary of Sinohydro Corporation Ltd (“SINOHYDRO”), which in turn is a wholly-owned subsidiary of a major Chinese state-owned company, Power Construction Corporation of China, Ltd (“POWERCHINA”), to explore and develop key initiatives across Malaysia’s growing renewable energy sector.
Sinohydro Malaysia serves as POWERCHINA‘s wholly-owned subsidiary in Malaysia, actively undertaking major construction and engineering projects across the country since 1998.
Among its notable projects, SINOHYDRO participated in the construction of Bakun Hydroelectric Plant (HEP) in Sarawak, with an installed capacity of 2400MW which is the largest hydroelectric power station in Malaysia and in Southeast Asia. SINOHYDRO also participated in the construction of several major power plants in Malaysia, including Connaught Bridge Power Station, Tanjung Kidurong Combined Cycle Gas Turbine Power Plant, Hulu Terengganu Hydroelectric Project, Murum Hydroelectric Plant, Large Scale Solar 3 (LSS3) Coara Marang Solar Power Project and Telekosang Small Hydro Power Plants. Sinohydro Malaysia is currently carrying out the construction of the Baleh Hydroelectric Project, the largest on-going hydroelectric power plant project in Malaysia, as well as the Miri Combine Circle Gas Turbine Power Plant in Miri, Sarawak.
This strategic partnership underscores both parties’ commitment to drive innovation, fostering technological advancement, and contributing to Malaysia’s clean energy transition and economic growth while upskilling local Malaysians with the transfer of technologies and best global practice.
The MoU outlines several key areas of cooperation designed to support the Government’s vision of accelerating Malaysia’s clean energy agenda in line with the National Energy Transition Roadmap:
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- Renewable Energy Project Development: The parties will jointly identify, evaluate, and develop viable renewable energy projects throughout Malaysia. These include, but are not limited to, initiatives in solar, geothermal, hydroelectric, and other clean energy technologies, leveraging the unique strengths and expertise of both companies to harness Malaysia’s natural resources for clean power generation.
- Technology Transfer and Best Practices: A core objective of the collaboration is to facilitate the transfer of advanced technologies and best practices. This will encompass critical fields such as cutting-edge solar solutions, geothermal energy, hydropower systems, and small modular reactor (“SMR”) technologies, thereby accelerating Malaysia’s adoption of state-of-the-art clean energy solutions.
- Sustainable Rare Earth Exploration: The MoU also paves the way for exploring opportunities in sustainable rare earth mining projects, specifically those related to usage in renewable energy. This initiative aims to secure a reliable and environmentally responsible source of these critical materials, which are essential for the production, construction and operation of renewable technologies. This aligns with the increasing global demand for not only clean electricity, but also for clean sources of electricity.
- Innovation and Enhancement: Both parties are committed to jointly pursuing the development of enhancements and innovations stemming from the transfer of technology in renewable energy, supporting DNeX’s stated commitment Malaysia’s Net Zero emissions target by 2050, and its ambition to capitalise on global Energy Transition opportunities.
- Local Talent Development: Recognising the paramount importance of a skilled workforce for sustainable growth, the MoU includes provisions to upskill and develop local talent within both the renewable energy sector and the rare earth mining, extraction, and production industries.
“This partnership marks a pivotal moment for DNeX ‘s journey towards a sustainable future,” said Faizal Sham Abu Mansor, Group Chief Executive Officer of DNeX, adding that, “Our collaboration with SINOHYDRO will not only unlock new renewable energy potential across the nation but also enable us to embrace advanced technologies like SMR. This opportunity will greatly complement our on-going sustainability plans in the Energy sector as we intend to move our oil and gas portfolio closer to bridge fuel like natural gas in lieu of oil and in our IT sector which is focusing more and more on provision of sovereign cloud and AI services. This requires large amount of energy, and partnering with SINOHYDRO enables us to moonshot ourselves in the field of SMR and ensure our products and service offerings are not only reliable but a carbon-free power source.
Furthermore, our joint commitment to clean rare earth extraction aligns perfectly with our vision for responsible resource management and industrial growth. We are particularly excited about the prospect of developing local expertise and creating high-value jobs in these critical sectors.”
“As we accelerate our shift towards a greener future, this partnership represents a milestone in our renewable energy transition and expansion from our traditional oil and gas business reinforcing our dedication to environmental stewardship,” he added.