Resource-State and Market-State Governance in Natural Gas Regulation: A Comparative Legal Analysis of Malaysia and Singapore

Abstract

This paper compares the legal aspects of the regulation of natural gas in Malaysia and Singapore by exploring the influence of two contrasting models of governance on the determination of energy security, market performance and integration of sustainability. The research follows a doctrinal comparative approach, which examines statutory frameworks, regulatory agencies and policy instruments that regulate natural gas industries of the two jurisdictions. The concept of the study views Malaysia as a resource-state regime, which is characterised by centralised control and dominance by the state through PETRONAS, and Singapore is a market-state regime that is characterised by liberalisation, diversification of imports and regulatory autonomy under the Energy Market Authority. The results indicate that the resource-based framework of Malaysia gives more emphasis to strategic control and export-oriented production but limits market competition and price openness. Conversely, the liberalised regulatory architecture in Singapore promotes efficiency, investment assurance and consumer involvement since it entirely relies on imported natural gas. Both nations use natural gas as an intermediate gas for decarbonisation. However, Singapore has been using this as part of a market-oriented sustainability approach, compared to Malaysia, whose primary source of decarbonisation is mainly through state-imposed regulations. This research can benefit the field of Southeast Asian energy law by demonstrating that institutional design has a significant effect on regulation delivery and sustainable patterns. The discussion presents the significance of measured market liberalisation, consistency in regulations and independence in institutions as a way of attaining long-term energy security and the energy transition agenda in developing economies.