Malaysia’s Nuclear Comeback: Leading Southeast Asia to Net-Zero
Nuclear energy is no longer an impossible mission for Malaysia, as they have renewed their commitment to making nuclear energy a part of its long-term clean energy mix. This plan is embedded in the 13th Malaysia Plan (Rancangan Malaysia Ketiga Belas, RMK13) 2026 - 2030, which officially incorporates nuclear power as a clean, competitive, and safe energy source to strengthen energy security, reduce reliance on fossil fuels, and support the country’s goal of achieving Net Zero Emissions (NZE) by 2050. As outlined in the National Energy Transition Roadmap (NETR), this ambition marks the revival of Malaysia’s nuclear program, which was once shelved.
The inclusion of nuclear energy as a future power source is an ambitious vision under the NETR, released in July 2023. The roadmap outlines three main targets for decarbonizing the power sector: achieving 40% renewable energy by 2040 and 70% by 2050, phasing out coal entirely by 2045, and using natural gas as a low-carbon baseload fuel during the transition period. This commitment is also aligned with the long-term plan to retire coal plants, with about half of Malaysia’s coal-fired capacity, around 7 GW, scheduled to retire between 2029 and 2033, and the remaining 5 GW by 2044.
Choosing nuclear power as a baseload complement to renewable energy sources is a calculated decision. After years of preparing its nuclear program and over four decades of safely operating a research reactor, the question remains: how ready is Malaysia to realize their ambitious nuclear power project in the future?
Looking Back at Malaysia’s Nuclear Ambition Journey
The current nuclear momentum marks a significant milestone in Malaysia’s long-term nuclear commitment. Malaysia’s interest in nuclear power is not new. In 2008, the government formed the Nuclear Power Development Steering Committee, followed in 2009 by former Prime Minister Najib Razak’s announcement of plans to build a small-scale nuclear reactor.
Two years later, the Malaysia Nuclear Power Corporation (MNPC) was established as the country’s Nuclear Energy Programme Implementing Organization (NEPIO) under the Prime Minister’s Department, taking over the committee’s role. At the same time, a budget of USD 7.69 million was allocated from 2010 - 2012 to demonstrate strong commitment to nuclear power development. Under the plan, nuclear power plant (NPP) operations would likely be handled by utility companies such as Tenaga Nasional Berhad (TNB), Malaysia’s leading electricity provider. This was supported by an Memorandum of Understanding (MoU) between Korea Electric Power Corporation (KEPCO) and TNB in 2009, and in 2014 TNB partnered with Électricité de France (EDF) to develop a comprehensive Nuclear Roadmap.
Between 2011 - 2014, MNPC carried out pre-project activities, including legal and regulatory studies, and completed the Nuclear Power Regulatory Infrastructure Development Plan (NPRIDP). However, these plans were abandoned after MNPC was dissolved in 2018, following Najib’s departure from office. His successor, Tun Dr. Mahathir Mohamad, declared that Malaysia would not pursue nuclear power. Then, in November 2024, then-Economy Minister Rafizi Ramli confirmed that the Cabinet and National Energy Council had approved the inclusion of nuclear power in RMK13.
On July 31, 2025, through the release of RMK13, the government renewed its nuclear commitment by designating MyPOWER Corp as NEPIO to lead the nuclear energy program. It ensures governance aligned with International Atomic Energy Agency (IAEA) standards, coordinating public communication, infrastructure investment, R&D, skills training, and international cooperation.
According to Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof, the government has completed a nuclear pre-feasibility study, finding it technically viable and a potential long-term option for the national energy mix. Conducted by MyPOWER Corp from June to December 2024, the study followed the IAEA-recommended phased approach and identified 24 key findings and 22 strategic recommendations to support Malaysia’s nuclear readiness.
Exploring Malaysia’s Future Nuclear Technology
Amid the evolving nuclear technology landscape, Small Modular Reactors (SMRs) have emerged as a strategic choice for Malaysia’s nuclear industry. Since last year, Malaysia’s Ministry of Science, Technology and Innovation (MOSTI) has conducted study visits to Russia to explore floating nuclear power plants (FNPPs), nuclear fuel cycles, and related safety guidelines. This choice is based on power needs, scalability, geographic conditions, and enhanced nuclear safety.
SMRs offer a more practical alternative to large-scale reactors, the latter requiring massive capital investment and carry higher financial risk, especially for first-time nuclear operators like Malaysia. With a capacity of up to 300 MW per unit, SMRs can be tailored for smaller grids or remote areas, scaled up gradually to reduce funding pressure, and replace aging fossil-fuel plants. They also provide lower capital costs due to modular factory-based manufacturing, advanced safety features, flexible siting options, shorter construction times for faster returns, and better fuel efficiency.
The rising demand from Malaysia’s data centers and Artificial Intelligence (AI) sectors further strengthens the case for scalable, high-capacity power generation. This makes SMRs increasingly attractive, reliable, and viable for the future, though as a relatively new technology, further research and evaluation are needed for optimal deployment.
Forecasting Malaysia’s Nuclear Capacity
Although RMK13 does not explicitly define Malaysia’s nuclear capacity targets, the country’s energy policy direction is becoming clearer. The commitment to NZE by 2050 through clean energy diversification and coal phase-out is a strategic priority. In presenting RMK13, Prime Minister Datuk Seri Anwar Ibrahim stated that Malaysia aims to raise the renewable energy share in its energy mix to 35% by 2030, up from around 29% today.
While renewable energy expansion is expected to cut carbon emissions and open investment opportunities, demand forecasts for the 2030s show a significant supply gap. This shortfall will be hard to fill entirely with intermittent renewables, making zero-emission, stable baseload sources like nuclear power essential.
Given global SMR trends, typically 250 - 300 MW per unit, plans to deploy 2–4 SMR units by 2031 align with a total installed capacity of about 750 - 1,200 MW. A reasonable estimate of roughly 1,000 MW would reflect Malaysia’s medium-term energy needs, nuclear technology developments, and clean energy policy direction. This would be the ideal nuclear energy allocation for the long term as a combination of new renewable energies and nuclear energy.
Embracing the Nuclear Era: Malaysia’s Challenges and Holistic Strategy
Experts and policymakers in Malaysia increasingly recognize that without nuclear power in the national energy mix, achieving NZE by 2050 will be extremely difficult, even with continued solar and hydro expansion. Nuclear energy offers dense, reliable, and large-scale clean power, making it a strong candidate for Malaysia’s future energy system. However, technical, environmental, regulatory, and social challenges require a holistic strategy as shown in the following:
Robust Regulatory Framework: Strengthening nuclear regulations and conducting comprehensive feasibility studies covering safety, security, IAEA safeguards, environmental impact, financial viability, and stakeholder engagement.
Critical Site Selection Considerations: Choosing NPP sites based on geographic and geological is important to ensure mitigation of earthquake damages. The location is crucial as reactor cooling systems require large quantities of water to ensure optimal operation, and therefore, proximity to water sources is essential.
International Cooperation: Partnerships with experienced countries such as Russia and the US can accelerate technology transfer and best practice adoption. In July 2025, Malaysia and the US signed a Strategic Civil Nuclear MoU as a first step toward a 123 Agreement, granting access to US nuclear technology. In June 2025, Malaysia’s MyPOWER also signed a non-disclosure agreement (NDA) with Rosatom for nuclear cooperation.
Human Capital Development: Advanced nuclear technology demands a highly skilled workforce. This can be achieved through training, internships, a national framework for capacity building, and inclusive communication strategies reaching rural and indigenous communities, as seen in MOSTI’s initiatives.
Innovative Energy Transition Financing: Under RMK13, Malaysia plans to leverage the National Energy Transition Fund (NETF) as a key financing driver, using blended financing to combine public funds with private investment to boost low-carbon industry growth. To ensure participation from both public and private sectors, Malaysia can learn from the successes in the renewable energy sector, such as Community Renewable Energy Aggregation Mechanism (CREAM) and Corporate Renewable Energy Supply Scheme (CRESS).
Charting Malaysia’s Nuclear Future: Partnerships and Commitment as the Foundation
Malaysia now stands at a strategic crossroads in its energy transition, with nuclear power emerging as a highly viable option. Although the government has yet to finalize details for building an NPP, foundational steps have been taken. Still, the program’s success hinges on safety and public acceptance. The government has emphasized that environmental protection and safety assurance are top priorities, and such a project can only proceed with public approval. Without trust and support, no matter how advanced the technology, nuclear power cannot take root in Malaysia.
Ultimately, Malaysia’s path to realizing nuclear energy lies in strong partnerships and unwavering commitment. A solid ecosystem of partners is needed to ensure technology transfer and adherence to global standards. Yet at the core of it all is stable governance and robust regulation. Only with consistent commitment can Malaysia build the trust needed to turn this vast potential into reality. This is not a revival, but rather a renewal and nuclear will play a major role in Malaysia’s decades to come.
