Malaysia Weighs Nuclear Energy as Part of Ambitious Plan to Achieve Net-Zero Goals

Strategic Insights -

Malaysia, a Southeast Asian country with growing energy demands, is poised to join the global nuclear energy transition as it embarks on a 2050 net-zero ambition. The government has recommenced debate over including nuclear power in the national energy mix, a decision that could significantly impact the country's energy landscape. Proponents argue that nuclear energy provides a reliable, low-carbon power source essential for supporting Malaysia's economic growth and achieving its decarbonisation goals. As the country prepares for a projected surge in electricity demand from data centres, the debate surrounding nuclear energy has intensified, with supporters citing its long-term economic and social benefits. Critics, however, raise concerns over waste management, safety, and high upfront investment costs.

Key Takeaways:

  • Malaysia's power demand from data centres is projected to surge sevenfold from 8.5 TWh in 2024 to 68 TWh in 2030, accounting for about 30 percent of total national demand.
  • Deputy Prime Minister Datuk Seri Fadillah Yusof announced the government's plan to explore nuclear energy for power generation under the 13th Malaysia Plan as part of its clean energy strategy.
  • World Nuclear Association (WNA) director-general Dr Sama Bilbao y Leon stated that nuclear energy could reduce electricity costs by as much as 75 percent once integrated into national grids.
  • Citing Finland's experience, she said countries like Malaysia should evaluate not just the investment but the long-term national benefits, including decades of clean energy generation, job creation, and socio-economic growth.
  • Malaysia Programme Office for Power Electricity Reform (MyPOWER) Corporation has outlined a phased communication strategy to strengthen public understanding and confidence in nuclear energy.
  • MyPOWER is conducting a detailed assessment on Malaysia's legal and regulatory frameworks to ensure full compliance with international legal requirements under the International Atomic Energy Agency (IAEA) guideline.
  • ASEAN Parliamentarians for Human Rights (APHR) co-chairperson Charles Santiago urged the government to disclose proposed reactor and waste disposal sites, saying transparency is key to public trust.

Statistics:

  • Power demand from data centres is projected to surge sevenfold from 8.5 TWh in 2024 to 68 TWh in 2030.
  • Nuclear energy could reduce electricity costs by as much as 75 percent once integrated into national grids (as stated by Dr Sama Bilbao y Leon).
  • The government has allocated approximately RM 28.6 million in Budget 2026 to advance Malaysia's nuclear readiness.

Sources:

  • BERNAMA News Agency
  • Ember (energy think tank)
  • Deputy Prime Minister Datuk Seri Fadillah Yusof
  • World Nuclear Association (WNA)
  • Malaysia Programme Office for Power Electricity Reform (MyPOWER) Corporation
  • International Atomic Energy Agency (IAEA)
  • ASEAN Parliamentarians for Human Rights (APHR)
  • Sahabat Alam Malaysia (SAM)