World Bank Partners Johor and Ditrolic to Develop US$6 Billion Renewable Energy Corridor

KUALA LUMPUR (Nov 25) — The World Bank Group has formalised a major partnership with the Johor state government and Ditrolic Energy to develop the Southern Johor Renewable Energy Corridor (SJREC), a pivotal renewable energy mega-project worth US billion (RM24.83 billion).

The collaboration was sealed through a letter of partnership involving the International Finance Corporation (IFC), Johor’s investment arm Permodalan Darul Ta’zim (PDT) and renewable energy developer Ditrolic Energy, coinciding with the launch of the Johor Renewable Energy Policy 2030.

Key Component of the Johor–Singapore SEZ

The SJREC forms a cornerstone of the Johor–Singapore Special Economic Zone (JS-SEZ), a fast-evolving cross-border growth region drawing significant global attention.

The corridor spans 2,000 sq km, designed as a hybrid solar-plus-battery energy storage zone. Its initial phase will feature:

• Up to 4 gigawatts peak (GWp) of solar generation

• 5.12 gigawatt hours of energy storage

• A 10,000-acre development footprint

This positions SJREC among the region’s most ambitious clean-energy initiatives.

Powering Johor’s Industrial and Digital Growth

The SJREC is designed to supply large-scale clean electricity directly to businesses in Johor’s rapidly expanding industrial ecosystem, including:

• Hyperscale data centres

• Advanced manufacturers

• Logistics and digital operators

Johor has recently emerged as Southeast Asia’s most active data-centre expansion zone—complementing the rising demand seen across industrial land in Selangor, factory clusters in Puchong, and industrial property in the Subang area.

Clean-energy availability is expected to deepen Johor’s competitiveness in sectors such as semiconductors, digital services and cross-border logistics.

Supporting ASEAN Power Grid Connectivity

Beyond local supply, the SJREC is structured to enable clean electricity exports to Singapore, aligning with the ambitious ASEAN Power Grid (APG) vision to link regional electricity networks by 2045.

PDT president and group CEO Datuk Ramlee A Rahman said the partnership affirms Johor’s readiness to serve as the region’s primary renewable energy hub.

“This project positions Johor at the heart of ASEAN’s clean-energy future, strengthening the state’s role in high-growth, regional power integration,” he said.

Job Creation and Economic Impact

The corridor is expected to deliver substantial economic benefits:

• Approximately 125,000 new jobs across construction, operations and maintenance

• A deeper talent pipeline to support Malaysia’s green-economy transition

• Expanded opportunities for foreign direct investment

These impacts mirror the positive spillovers typically observed around major economic corridors, including growing demand for commercial property in KL, transit-linked office space in Bukit Jalil, and industrial logistics hubs nationwide.

Ditrolic’s Role in Anchoring Clean Energy Export Potential

Ditrolic Energy’s CEO Tham Chee Aun said its 4GWp solar-plus-storage catalytic project will anchor Johor’s long-term clean-energy strategy.

“This development under the SJREC will provide a stable foundation for industries seeking renewable, low-cost power and position Johor as a key exporter of sustainable energy,” he said.

Ditrolic, founded in 2009 and headquartered in Johor, has completed more than 300MW worth of renewable energy projects across Southeast and South Asia.

Aligned With ASEAN Power Grid Financing Initiatives

The collaboration comes shortly after the launch of the ASEAN Power Grid Financing (APGF) initiative — a region-wide framework led by ASEAN and the ASEAN Centre for Energy, coordinated with the World Bank Group and Asian Development Bank.

The APGF aims to mobilise large-scale financing for cross-border power interconnections, including subsea transmission vital for renewable-energy sharing.

World Bank Group Malaysia country manager Judith Green said the SJREC will support Johor’s long-term development aims while strengthening regional clean-energy trade.

“This project not only drives sustainable growth for Johor but enhances regional economic cooperation between Malaysia and Singapore,” she said.

Royal Endorsement Underscores Project Importance

The announcement was witnessed by Raja Permaisuri Agong Raja Zarith Sofiah, signalling strong federal, state and royal support for Johor’s clean-energy transition and the JS-SEZ’s cross-border ambitions.