Can 123 Agreements Boost Southeast Asia’s Nuclear Energy Programs?
Southeast Asia is now preparing to develop nuclear power programs. This growing momentum has attracted the attention of leading nuclear powers, including the United States (US), Russia, China, and France, each offering civil nuclear cooperation and proposals for nuclear power plant (NPP) development projects in the region.
Most recently, on July 10, 2025, Malaysia and the US signed a Memorandum of Understanding (MoU) on Strategic Civil Nuclear Cooperation in Kuala Lumpur, signed by Malaysia’s Foreign Minister, Mohamad Hasan, and US Secretary of State, Marco Rubio. This MoU marks a critical first step toward initiating negotiations for 123 Agreements between the two countries. Meanwhile, other Southeast Asian nations such as Thailand, Singapore, and the Philippines have already signed and enacted 123 Agreements with the United States, allowing for deeper collaboration in the peaceful uses of nuclear energy.
On the other hand, countries such as Vietnam have established nuclear cooperation with Russia to revive their civil nuclear ambitions. Russia through Rosatom has also made offers to Indonesia for the construction of NPPs in alignment with the country’s clean energy transition goals. So, what exactly is a 123 Agreement and with more Southeast Asian countries joining the pact, will this accelerate the development of nuclear energy programs across the region?
123 Agreement: Strategic Access to US Nuclear Technology
The 123 Agreement, established under Section 123 of the US Atomic Energy Act of 1954, provides a legal framework that enables peaceful nuclear cooperation between the United States and its partner countries. It is a prerequisite for the US to legally export nuclear materials and equipment, forming the foundation for long-term strategic civil nuclear partnerships.
Historically, the agreement was initiated during the Eisenhower administration as a tool to expand US global influence while curbing nuclear proliferation. This became increasingly important during the Cold War, as the Soviet Union was also using nuclear technology exports to strengthen its international standing. Over time, 123 Agreements evolved into a central legal mechanism for US civil nuclear cooperation, covering exports of reactors, major components, and nuclear fuel, while ensuring non-proliferation through the implementation of safeguards. Beyond its strategic rivalry with Russia in extending nuclear influence abroad, the US has now signed and enforced 123 Agreements with several Southeast Asian countries, reflecting a diverse and complex landscape of civil nuclear partnerships in the region.
US–Southeast Asia Nuclear Partnerships: Who’s In and Who’s Next?
While the 123 Agreements generally follow a standardized legal framework, the motives behind each Southeast Asian country's decision to involve and sign them may vary. These differences reflect each nation’s unique energy demands, infrastructure readiness, long-term strategic vision, and geopolitical positioning. Influencing factors include the urgency of securing clean and stable baseload power, technology exploration, specific economic development goals, and broader alignment with US strategic interests in the region.
The Philippines
The Philippines signed a 123 Agreement with the US on November 16, 2023, following negotiations that began in November 2022. Notable for its strong focus on advanced reactor development and Small Modular Reactor (SMR) deployment, the agreement aims to support the Philippines' climate goals, energy security, and base load electricity needs, particularly considering the country’s vulnerability to oil price volatility and frequent power outages. This also aligns with the US's strategic effort to position SMR technology as a strategic export, leveraging the Philippines as a potential early adopter in the region. Entering into force on July 2, 2024, the agreement marks a key milestone in advancing the Philippines–US clean energy partnership and strengthening long-term bilateral relations.
Singapore
Singapore signed a 123 Agreement with the US on July 31, 2024, which entered into force on December 12, 2024. The agreement enables Singapore to explore advanced nuclear technologies, including SMRs, to support its decarbonization and energy security goals. Although the city-state has not committed to building a nuclear power plant, the agreement nonetheless grants access to US nuclear expertise and technology, an important foundation for long-term readiness. Singapore’s focus on exploratory access rather than immediate deployment reflects its position as a technologically advanced nation with limited land availability for large-scale nuclear. This dynamic allows the US to frame the agreement as a precedent for knowledge transfer and regulatory cooperation with highly developed economies.
Thailand
Thailand signed a 123 Agreement with the US on January 14, 2025, in Bangkok, with US Ambassador Robert F. Godec and Thailand’s Minister of Higher Education, Science, Research, and Innovation, Supamas Isarabhakdi, officiating the signing. The agreement entered into force on July 9, 2025, and aims to strengthen bilateral energy cooperation and diplomatic ties. Driven by its energy diversification targets on its Power Development Plan, Thailand views SMR technology as a viable solution to the limitations of renewable energy and a key component of its 2037 energy mix strategy. The agreement also provides a collaborative framework for the peaceful use of nuclear energy and reinforces commitments to non-proliferation.
Malaysia
Malaysia recently signed an MoU with the US on strategic cooperation in civil nuclear energy, marking an initial step toward negotiating a 123 Agreement. This cautious and phased approach, beginning with an MoU rather than a full agreement, signals the revival of Malaysia’s national nuclear agenda, previously halted in 2018 by the former Prime Minister Mahathir Mohamad, due to concerns over nuclear waste and limited domestic expertise. It reflects a deliberate strategy to rebuild domestic consensus and technical capacity, with the US aligning its engagement to support Malaysia’s long-term goals in energy diversification and nuclear capability development.
Between Options: Strategic Pathways in Nuclear Development
As of now, the US maintains 26 active agreements governing peaceful nuclear cooperation with 50 countries, the International Atomic Energy Agency (IAEA), and Taiwan’s regulatory authority (via the American Institute in Taiwan). According to the US Department of Energy, both Indonesia and Vietnam are among the US partners under the 123 Agreement, effective from December 30, 1981 to December 30, 2031 for Indonesia, and from October 3, 2014 to October 3, 2044 for Vietnam, with rolling five-year extensions.
Amid rising geopolitical competition and a growing number of nuclear cooperation offers; these developments present strategic opportunities and challenges for countries in Southeast Asia as they pursue international partnerships and select appropriate nuclear technologies for national implementation.
Indonesia’s position as a non-aligned country offers flexibility in engaging with multiple partners but also presents a challenge in balancing competing strategic offers. The existing 123 Agreement with the US could serve as a catalyst to advance Indonesia’s internal discourse on nuclear energy development, offering potential benefits such as access to proven and safe technologies, comprehensive human capital training, and strong support for non-proliferation principles. On the other hand, Indonesia must also weigh geopolitical implications and attractive offers from other countries, particularly Russia. Through its state-owned nuclear corporation, Rosatom, Russia has actively promoted SMR and Floating Nuclear Power Plant (FNPP) technologies. These options offer high adaptability to Indonesia’s unique geographical challenges, particularly in remote and coastal areas, and are backed by comprehensive packages that include financing, construction, and operation. With multiple viable partners available, Indonesia is now in a strategic position to define its nuclear energy policy direction while safeguarding national interests amid shifting global dynamics.
Similarly, Vietnam can view its existing 123 Agreement with the US as an opportunity to strengthen its nuclear workforce, diversify its technology sources, and deepen its strategic ties with Washington. However, Vietnam’s decisions will likely be influenced by economic considerations, energy security demands, and its complex geopolitical relationships with major powers, including Russia. Therefore, a thorough evaluation of all available options, factoring in energy needs, technical capabilities, economic feasibility, and geopolitical positioning, is essential for Vietnam to chart its nuclear energy path effectively.
US vs Russia: Competing Influence in the Nuclear Market
In broad terms, the 123 Agreement represents a multifaceted US foreign policy instrument in Southeast Asia. While the agreement primarily aims to promote peaceful nuclear cooperation and support the development of national nuclear programs, its implementation does not directly diminish Russia’s existing nuclear influence in the region.
However, the growing network of 123 Agreements across Southeast Asia might position the US as a counterbalance to Russia’s strategic foothold in the region. Through this framework, Washington could form a bloc of "trusted nuclear partners" based on high standards of non-proliferation, safety, and technology exchange, making it a more attractive option for emerging nuclear countries. While this framework aims to make the US a more attractive option, the actual shift in preferences will depend on a complex interplay of factors including the cost-competitiveness of US technologies, the flexibility of financing packages, existing historical ties, and the specific energy security needs of each nation. Therefore, while the US is building a strong foundation, the market remains highly competitive.
In addition, Russia continues to maintain significant influence in the global nuclear market. In recent years, it has emerged as a major supplier of nuclear technologies across Latin America, the Middle East, Africa, and Asia, including Southeast Asia. Russia’s strategy focuses on forging new diplomatic and commercial partnerships by offering flexible agreements without strict non-proliferation preconditions and providing a broad spectrum of nuclear technologies. This approach has helped build trust and attract countries looking for practical and comprehensive solutions to kickstart their nuclear energy programs.
Charting ASEAN’s Nuclear Synergy: A Regional Collaboration
Ultimately, the choice of nuclear cooperation partners lies within the sovereign decision-making of each ASEAN member state. However, what is equally vital is how these nations collaborate and support each other throughout their nuclear energy journeys. Regional synergy through the Nuclear Energy Cooperation Sub-Sector Network (NEC-SSN) and the ASEAN Network of Regulatory Bodies on Atomic Energy (ASEANTOM) plays a crucial to facilitate the exchange of best practices in nuclear safety and regulation, build human resource capacity, and harmonize regional nuclear security frameworks.
NEC-SSN serves as a dedicated ASEAN energy body that drives regional collaboration in civil nuclear energy. Its mandate includes facilitating information exchange, technical assistance, networking, and training, particularly for the peaceful use of nuclear power. NEC-SSN initiatives are anchored under the Civilian Nuclear Energy (CNE) program area, one of the seven program areas under the ASEAN Plan of Action for Energy Cooperation (APAEC). On April 28 to 30, 2025, the NEC-SSN convened its 15th annual meeting in Kuala Lumpur, Malaysia. The forum underscored the growing urgency among ASEAN member states to revisit the role of nuclear energy as a clean, stable power source capable of replacing fossil fuels and supporting the region’s energy transition. It also focused on developing strategies and action plans under the APAEC 2026–2030 framework, including an evaluation of potential CNE activities.
Meanwhile, ASEANTOM, a subsidiary body under the ASEAN SOM, provides a collaborative platform among ASEAN nuclear regulatory bodies and relevant authorities. Its primary goal is to enhance nuclear safety, security, and safeguards across the region. ASEANTOM’s work includes organizing capacity-building meetings and training sessions, dispatching expert missions and scientific visits to support national regulators and promoting information sharing on nuclear regulatory activities. The network has also engaged in sustained partnerships with international stakeholders, including the IAEA, the Republic of Korea (via the ASEAN+3 Human Resources Development Program), Japan (through seminars on the Peaceful Use of Nuclear Energy, Non-Proliferation, and Security), Russia (via the ASEAN-Russia Energy Cooperation Work Program 2010–2015), and the United States (under the ASEAN-US Energy Cooperation Work Plan 2012–2014). These collaborations reinforce ASEAN’s commitment to upholding the highest standards in safe and responsible nuclear energy development.
