Malaysia: Malaysia has been taking deliberate steps toward integrating nuclear power into its energy mix, although such developments may not occur in the immediate future.
According to BERNAMA News Agency, the critical question revolves around whether private firms or government-linked energy giants like Petroliam Nasional Bhd (Petronas) and Tenaga Nasional Bhd (TNB) will spearhead this civil nuclear project. The ongoing conflict between the United States and Iran, which has caused disruptions throughout West Asia and globally, has prompted Malaysia to consider alternative energy sources, including civil nuclear applications for both industrial and general use.
Recently, the International Atomic Energy Agency (IAEA) participated in a national workshop in Malaysia, focusing on strategies for human resource development to support current and future nuclear applications. Earlier this year, Deputy Prime Minister Datuk Seri Fadillah Yusof mentioned that Malaysia has conducted a comprehensive assessment of its potential nuclear energy program, addressing policy development, regulatory frameworks, project feasibility, industry involvement, stakeholder engagement, and human capital development.
Fadillah, who also serves as the Minister of Energy Transition and Water Transformation (PETRA), emphasized that exploring nuclear energy for electricity generation is a strategic move to enhance long-term energy security while supporting Malaysia's transition to clean energy. The Ministry of Science, Technology and Innovation (MOSTI), under Minister Datuk Chang Lih Kang, launched the National Nuclear Technology Policy (DTNN) 2030 to promote the peaceful use of nuclear technology. A government-commissioned pre-feasibility study found promising potential for nuclear energy as a clean, stable, and reliable source for Malaysia's long-term energy security.
Juwai IQI's global chief economist Shan Saeed noted that Malaysia's evaluation of civil nuclear energy is strategically and economically timely. Under the 13th Malaysia Plan (13MP), nuclear power is being considered as a low-carbon component of Malaysia's future electricity infrastructure, with MyPOWER Corporation coordinating a feasibility process aligned with the IAEA's Milestones Approach. The 13MP aims for initial operational capabilities by 2031, contingent on safety, regulatory readiness, and commercial viability.
The rapid expansion of data centers across ASEAN, with Malaysia leading the growth, further strengthens the economic rationale for nuclear power. The Malaysian Investment Development Authority (MIDA) has approved significant investments in data centers and cloud computing, and TNB has secured electricity-supply agreements for numerous data-center projects. MIDA projects that data-center power demand could account for a substantial portion of Peninsular Malaysia's installed capacity by 2035.
Shan emphasized that consistent electricity supply has become a national competitiveness imperative, impacting sectors beyond data centers, such as semiconductor fabrication and green hydrogen. Nuclear energy could complement Malaysia's renewable energy base, providing firm generation when solar output fluctuates and reducing reliance on imported fuels.
With the groundwork laid by the government, Petronas and TNB are expected to lead commercial initiatives, leveraging their strengths and capabilities. Shan suggested that the optimal model would involve government leadership paired with commercial discipline, with MyPOWER coordinating efforts supported by various energy agencies. International vendors would initially provide reactor technology and expertise, while long-term power-purchase agreements could enhance project bankability.
Malaysia is actively exploring various nuclear technologies to meet its energy needs. In 2025, the country signed a memorandum of understanding on Strategic Civil Nuclear Cooperation with the United States, supporting broader clean energy exploration and long-term energy security. Partnerships with China and Russia are also being considered to enhance preparedness for a future nuclear energy program.
Petronas and TNB are exploring options like third-generation nuclear fission and small modular reactors (SMRs), which are being implemented in Canada. Floating power units (FPUs) are another possibility, particularly suited for coastal nations. Several factors need consideration as Malaysia aims to incorporate nuclear energy into its generation mix by 2031.
Shan projected that if Malaysia's first nuclear power could be operational between 2038 and 2042, it would be credible. He emphasized building institutions, contracts, and infrastructure in that order. Wood Mackenzie models suggest that Malaysian SMR deployment could reach 1.2GW by 2050, with priorities in legislation, workforce development, site evaluation, regulation, financing, waste management, and decommissioning provisions.
In conclusion, an industry specialist highlighted the inevitability of nuclear energy for Malaysia's competitiveness, especially as the region sees more data centers and the need for AI-driven industrial growth.