China and Malaysia Sign US$100 Million Agreement For Large-Scale Solar Project Under LSS5+

The cooperation agreement for Malaysia’s Fifth Large-Scale Solar (LSS5+) photovoltaic investment project was officially signed on November 6, 2026, marking a significant step in strengthening renewable energy cooperation between China and Malaysia. The signing ceremony was held in Shanghai during the 9th China International Import Expo (CIIE), bringing together representatives from key companies and financial institutions involved in the project.

The project involves a total investment of more than US$100 million and will be jointly developed by China Power Engineering Consulting Group (CPECC) and Malaysia-based Jaks Resources Berhad. The partnership combines China’s engineering and technical capabilities with Jaks Resources’ local infrastructure experience to support the development of utility-scale solar power in Malaysia.

The collaboration aims to increase the availability of clean electricity and support Malaysia’s growing energy requirements. It is also expected to contribute to the country’s long-term renewable energy ambitions by expanding solar generation capacity and supporting the transition towards a lower-carbon electricity system.

Two major international banking institutions are supporting the project’s financing arrangements. Standard Chartered Bank has been appointed as the lead financing institution, account bank and coordinator. China Construction Bank (Malaysia) Berhad is participating as the co-lead arranger. Their involvement is expected to provide the financial structure and cross-border banking support required for project implementation.

The participation of these institutions highlights the growing role of international financing in supporting renewable energy infrastructure development. Large-scale solar projects require substantial capital investment, and financial partnerships can help developers secure funding and manage the requirements associated with project construction and execution.

The LSS5+ programme is part of Malaysia’s broader strategy to accelerate renewable energy deployment and reduce dependence on conventional fossil fuel-based electricity generation. Through competitive procurement and investment opportunities, the programme aims to encourage private sector participation in utility-scale solar development while attracting international investment into the country’s clean energy sector.

The signing at the China International Import Expo also reflects the expanding economic relationship between China and Malaysia, particularly in renewable energy, infrastructure and sustainable development. Cooperation between companies from both countries is expected to support technology exchange, engineering capabilities and investment flows across the clean energy industry.

The project represents another example of growing cross-border partnerships in Southeast Asia’s renewable energy market. By combining international engineering expertise, local development capabilities and financial support, the venture is expected to contribute to Malaysia’s clean electricity supply once operational.

The agreement also highlights the importance of international collaboration in accelerating solar energy deployment and supporting regional energy transition objectives.