CYBERJAYA: Dagang NeXchange Bhd (DNeX) has signed a memorandum of understanding (MoU) with Sinohydro Corporation (M) Sdn Bhd (SCSB) to explore and develop key initiatives across Malaysia’s growing renewable energy sector.
SCSB is a wholly owned subsidiary of China-based Sinohydro Corporation Ltd, which is a wholly owned subsidiary of Power Construction Corporation of China Ltd (PowerChina), a major Chinese state-owned company.
This strategic partnership underscores both parties’ commitment to driving innovation, fostering technological advancement, and contributing to Malaysia’s clean energy transition and economic growth, while upskilling local Malaysians through the transfer of technologies and best global practices.
DNeX group CEO Faizal Sham Abu Mansor said this partnership marks a pivotal moment for the company’s journey towards a sustainable future.
“Our collaboration with SCSB will not only unlock new renewable energy potential across the nation but also enable us to embrace advanced technologies like small modular reactor (SMR).
“This opportunity will greatly complement our ongoing sustainability plans in the Energy sector as we intend to move our oil and gas portfolio closer to bridge fuel like natural gas instead of oil, and in our IT sector, which is focusing more on the provision of sovereign cloud and AI services.
“This requires a large amount of energy, and partnering with SCSB enables us to moonshot ourselves in the field of SMR and ensure our products and service offerings are not only reliable but also 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,“ he said in a statement.
SCSB serves as a wholly-owned subsidiary of PowerChina in Malaysia, actively undertaking major construction and engineering projects across the country since 1998.
Among its notable projects, SCSB participated in the construction of the Bakun Hydroelectric Plant (HEP) in Sarawak, with an installed capacity of 2,400 MW, which is the largest hydroelectric power station in Malaysia and Southeast Asia.
SCSB 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.
SCSB is currently carrying out the construction of the Baleh Hydroelectric Project, the largest ongoing hydroelectric power plant project in Malaysia, as well as the Miri Combined Cycle Gas Turbine Power Plant in Miri, Sarawak.
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.
The collaboration focuses on jointly identifying and developing renewable energy projects across Malaysia, including solar, geothermal, hydroelectric, and other clean energy technologies.
By combining their unique strengths, both companies aim to harness Malaysia’s natural resources for sustainable power generation.
Additionally, the partnership seeks to transfer advanced technologies and best practices in fields such as solar, geothermal, hydropower, and SMR systems, accelerating the country’s adoption of cutting-edge clean energy solutions.
The agreement also includes initiatives for sustainable rare earth exploration, targeting responsible mining to secure materials vital for renewable energy production.
Both parties are committed to innovation and the development of local talent, supporting Malaysia’s net-zero emissions target by 2050 and ensuring a skilled workforce for the renewable energy and rare earth industries.
This approach positions Malaysia to capitalise on global energy transition opportunities while prioritising environmental responsibility.
“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,” Faizal added.
