Introduction
As Malaysia accelerates its pursuit of net-zero carbon emissions by 2050, a fundamental question surfaces: should nuclear power form part of the nation’s energy strategy? Industrialisation, rapid urbanisation, and the expansion of digital and manufacturing sectors are intensifying Malaysia’s electricity needs, even as the country commits to ambitious global climate goals under the Paris Agreement and the UN Sustainable Development Goals (“SDGs”).
At present, Malaysia’s dependence on fossil fuels, primarily coal and natural gas, remains the backbone of its energy infrastructure. Yet these sources are also the primary contributors to national greenhouse gas emissions. Balancing economic growth with climate commitments has therefore revived the debate over nuclear energy, prompting policymakers, experts, and the public to reconsider its role in Malaysia’s transition to cleaner power.
Policy Context and Strategic Significance
Malaysia’s energy mix is heavily tilted toward fossil fuels, which account for more than 80% of total electricity generation.[1] While this reliance has long underpinned industrial development, it now undermines Malaysia’s capacity to reduce carbon emissions. Renewable sources, such as hydropower, solar energy, and biomass, account for only a modest share of the national grid. Although solar power is expanding rapidly, its intermittent nature limits its ability to meet the continuous, large-scale energy demand.
Against this backdrop, nuclear power has re-emerged as a serious policy consideration. Malaysia’s participation in World Atomic Week 2025 in Moscow, with Malaysian representatives from the Ministry of Energy Transition and Water Transformation (“PETRA”) and the Atomic Energy Licensing Board (“AELB”) engaging with the International Atomic Energy Agency (“IAEA”) to explore cooperation, capacity building, and safety regulation.[2]
This renewed interest has since progressed beyond preliminary discussion and is now reflected in formal policy planning. Under Strategy A1.5 of the Thirteenth Malaysia Plan 2026–2030, nuclear energy has been identified as a potential source of clean electricity within the national energy mix, with implementation expected to begin operations by 2031.[3] This strategy signals the government’s intention to explore nuclear power as a long-term option to support energy security, economic growth, and climate commitments.
To support this initiative, MyPOWER Corporation (“MyPOWER”), a special purpose agency under PETRA, has been designated as the Nuclear Energy Programme Implementing Organisation. In this capacity, MyPOWER will be responsible for the governance and coordination of Malaysia’s national nuclear programme in accordance with standards set by the International Atomic Energy Agency.[4] This institutional framework reflects a structured and cautious approach, emphasising regulatory compliance, capacity building, and public engagement.
Regional and Global Context
1. Southeast Asia’s Growing Interest
Across Southeast Asia, nations are reassessing nuclear power as part of their clean energy transitions.
- The Philippines has revived the Bataan Nuclear Power Plant project and has partnered with the United States and the IAEA to update the feasibility and safety assessments.[5]
- Indonesia is exploring SMR deployment with international partners, aiming to operationalise its first reactor in the early 2030s.[6]
2. East Asia’s Established Leaders
In contrast, other countries such as Japan represent mature nuclear economies. Despite the Fukushima disaster, Japan has restarted several reactors after implementing rigorous safety reforms, reaffirming nuclear power as central to its decarbonisation and energy security strategy.[7]
Given this landscape, Malaysia’s entry into nuclear power would occur within a region rich in technological expertise and regulatory experience, offering valuable partnerships for training and system development.
The Case for Nuclear Integration
1. A Low-Carbon Energy Source
Proponents of nuclear power emphasise its unparalleled capacity to generate low-carbon electricity on a large scale. According to the World Nuclear Association (2024), the life-cycle carbon footprint of nuclear energy ranges between 12 and 15 grams of CO₂ per kilowatt-hour (“kWh”), accounting for emissions from planning, uranium mining, construction, operation, and decommissioning, rather than from the nuclear fission process itself.[8]
In comparison, gas-powered generation emits approximately 450 gCO₂/kWh, while coal-fired power produces around 1,050 gCO₂/kWh, making them roughly 30 and 70 times more carbon-intensive, respectively.
In Malaysia’s fossil-heavy energy landscape, incorporating nuclear power could substantially lower national carbon emissions while sustaining industrial growth. Experts note that countries with rising energy demands but limited renewable capacity, such as Malaysia, stand to gain significantly from the stable, continuous, and clean output that nuclear energy provides.[9]
2. Stable and Reliable Base-Load Power
Unlike solar and wind power, which fluctuate with weather conditions, nuclear reactors operate continuously, offering stable base-load power. This reliability is crucial for Malaysia’s energy-intensive industries, digital infrastructure, and expanding urban population. As the country’s electricity consumption surges, particularly with the rise of data centres and manufacturing, nuclear energy offers a consistent and round-the-clock power supply.[10] This stability would enhance grid resilience and mitigate blackout risks during periods of low renewable output.
3. Long-Term Economic Competitiveness
Although the initial capital cost of nuclear infrastructure is substantial, its operational lifespan is typically 40 to 60 years, making it a cost-effective long-term investment. The IAEA estimates that once construction and safety measures are in place, nuclear-generated electricity is price-competitive with fossil fuels, particularly when factoring in long-term operational and maintenance costs. For Malaysia, this translates to stable energy prices, reduced exposure to volatile global fuel markets, and improved economic resilience. PETRA officials position that nuclear energy could act as a strategic hedge against global energy shocks, ensuring affordable and predictable electricity for future generations.[11]
4. Technological Advancements and Safety Improvements
Public scepticism toward nuclear power often stems from a legacy of past disasters like Chernobyl and Fukushima Daiichi accidents. However, modern nuclear technology has evolved significantly in the decades since. Generation III and IV reactors feature passive safety systems that automatically shut down during emergencies. Furthermore, the Small Modular Reactors (“SMRs”) offer flexible, scalable, and safer options that require less land and infrastructure. The IAEA has commended these innovations, describing next-generation systems as designed to minimise the risk of accidents while maximising efficiency. For Malaysia, adopting smaller, safer reactors tailored to its scale could represent a pragmatic and forward-looking approach to nuclear integration.[12]
Challenges for Malaysia
A balanced view requires acknowledging that nuclear energy is not without challenges. For Malaysia to proceed responsibly, several critical issues must be addressed.
1. Establishing a Strong Legal and Regulatory Framework
A robust and comprehensive legal and regulatory system is the cornerstone of any nuclear energy programme. In Malaysia, this responsibility primarily lies with the AELB, which oversees the safe use of nuclear technology for medical, industrial, and research purposes. However, transitioning from these limited applications to full-scale power generation demands significant regulatory strengthening.
From a legal standpoint, adopting nuclear energy requires Malaysia to restructure and modernise its statutory environment. This includes clear and comprehensive legislation governing reactor licensing, radiation protection, nuclear safety and security, radioactive waste and spent fuel management, emergency preparedness, and long-term liability for nuclear damage. Such a framework must be capable of regulating the entire nuclear lifecycle, from construction and operation to decommissioning, while ensuring public safety and environmental protection at every stage.
Encouragingly, Malaysia has already taken concrete steps in this direction. The Atomic Energy Licensing (Amendment) Act 2025 introduced significant enhancements to the existing regulatory regime, most notably by introducing a mandatory permit system for the import, export, transhipment, and transit of radioactive and nuclear materials. Specifically, under the newly inserted Section 12A of the Atomic Energy Licensing Act 1984, it is stated that:
“Permit
12A. (1) Without prejudice to the requirements of any other law, no person shall –
(a) import radioactive material, nuclear material, nuclear related item or nuclear related technology; or
(b) export, tranship or bring in transit radioactive material or nuclear material,
unless he is the holder of a valid permit issued under subsection 16A(2) by the Director General for such purpose as specified in the permit.”
This amendment broadens regulatory oversight beyond domestic activities and strengthens state control over nuclear-related materials, reflecting Malaysia’s alignment with international nuclear safety and security norms.
While these amendments reflect growing regulatory readiness, further reforms will be necessary if Malaysia proceeds with nuclear power generation, including alignment with international instruments such as the Convention on Nuclear Safety and IAEA safety standards.
2. Enhancing Public Education and Transparency
Public understanding and acceptance are essential for the success of a nuclear energy initiative. Many Malaysians continue to associate nuclear power with radiation risks due to past accidents.
Addressing this concern is both a legal and technical imperative. Public transparency, accountability, and access to information are central principles of administrative law and good governance. The government must therefore conduct open consultations, publish the findings of feasibility studies, and ensure that nuclear decision-making follows fair and transparent procedures. A legally sound process enhances legitimacy, builds public trust, and reduces the risk of future litigation or political resistance.
3. Investing in Infrastructure and Skilled Workforce Development
The establishment of nuclear power plants requires substantial infrastructure and a highly skilled workforce. This extends beyond engineers and scientists. Malaysia will also require legal specialists trained in nuclear law, environmental law, international compliance, energy regulation, and contract negotiation. Lawyers will play a vital role in drafting legislation, reviewing regulatory requirements, structuring public-private partnerships, managing cross-border agreements, and advising on liability regimes. A strong domestic legal talent pool is therefore essential to a safe and sustainable nuclear energy programme.
Why Law Matters in Malaysia’s Nuclear Future
As Malaysia considers integrating nuclear energy into its national electricity mix, the legal profession will play a central role in shaping this transition. Lawyers will be involved in drafting comprehensive nuclear legislation, negotiating international cooperation, advising on environmental and safety compliance, and ensuring that regulatory processes meet global best practices. The future of nuclear energy in Malaysia ultimately depends on a transparent, robust, and well-enforced legal framework that reflects the fundamental connection between energy policy, governance, and the rule of law.
Conclusion
The debate over nuclear energy in Malaysia reflects a broader global challenge of meeting rising energy demand while reducing carbon emissions. While nuclear power offers stable, low-carbon and cost-competitive energy, it also demands strong governance, rigorous safety standards, and public trust. For Malaysia, any move towards nuclear energy must be gradual, transparent, and grounded in legal, environmental, and technical responsibility. With appropriate policies, stakeholder engagement, and legal safeguards, nuclear power could support Malaysia’s transition towards a sustainable, secure, and low-carbon energy future.
For further information, please contact:
Norhisham Abd Bahrin, Partner, Azmi & Associates
norhisham@azmilaw.com
- Ministry of Natural Resources, Environment & Climate Change, Malaysia Energy Transition Outlook (IRENA, 2023) <https://www.law.ox.ac.uk/sites/default/files/migrated/oscola_4th_edn_hart_2012quickreferenceguide.pdf> accessed 22 November 2025.
- The Sun, ‘Nuclear Power – the road to net zero?’ The Sun BIZ & FINANCE (Petaling Jaya, 25 October 2025), 13 <https://thesun-ipaper.cld.bz/publication/20251025/12/#zoom=true> accessed 22 November 2025.
- Ministry of Economy, Thirteenth Malaysia Plan 2026–2030 (2025) <https://www.investmalaysia.gov.my/media/m3eamxey/thirteenth-malaysia-plan-2026-2030.pdf> accessed 1 January 2026.
- Ibid.
- Adoracion M. Navarro, ‘Nuclear Power in the Philippines: The Need to Address Institutional Gaps’ (Fulcrum, 14 May 2025) <https://fulcrum.sg/nuclear-power-in-the-philippines-the-need-to-address-institutional-gaps/> accessed 3 January 2026.
- Nuclear Business Platform, ‘Indonesia Developing Indigenous SMR Technology’ (Nuclear Business Platform, June 2021) <https://www.nuclearbusiness-platform.com/media/insights/indonesia-developing-indigenous-smr-technology> accessed 30 December 2025.
- Koh Ewe, ‘Japan restarts world’s largest nuclear plant as Fukushima memories loom large’ (BBC, 22 January 2026) <https://www.bbc.com/news/articles/cq6v0v32rg1o> accessed 27 January 2026.
- World Nuclear Association, ‘Carbon Dioxide Emissions from Electricity’, (World Nuclear Association, 3 September 2024) <https://world-nuclear.org/information-library/energy-and-the-environment/carbon-dioxide-emissions-from-electricity> accessed 28 December 2025.
- Dhana Raj Markandu, ‘Cover Story: Should Malaysia give nuclear power the green light’ (Institute of Strategic & International Studies (ISIS) Malaysia, 21 February 2025) <https://www.isis.org.my/2025/02/21/cover-story-should-malaysia-give-nuclear-power-the-green-light/> accessed 3 January 2025.
- Ibid.
- World Nuclear News, ‘Malaysia launches nuclear energy feasibility study’ (World Nuclear News, 19 August 2025) <https://www.world-nuclear-news.org/articles/malaysia-launches-nuclear-energy-feasibility-study> accessed 27 November 2025.
- International Atomic Energy Agency, ‘IAEA Mission Observes Commitment to Safety at Research Reactor in Malaysia, Recommends Further Improvement’ (International Atomic Energy Agency, 20 June 2025) <https://www.iaea.org/newscenter/pressreleases/iaea-mission-observes-commitment-to-safety-at-research-reactor-in-malaysia-recommends-further-improvement> accessed 4 January 2026.
