Nuclear energy is gaining traction across Southeast Asia as governments seek to meet rising electricity demand, strengthen energy security and secure reliable low-carbon power, creating potential opportunities for Malaysia to participate in the emerging regional nuclear supply chain, CGS International said on last Friday.
In a recent webinar on nuclear energy in Southeast Asia, the research house said in a note that regional cooperation could improve the economics and credibility of nuclear deployment through common approaches to safety, safeguards, regulatory training and technology assessment.
The renewed interest in nuclear power is being driven by rising power demand, particularly from data centers, and growing energy security concerns amid geopolitical tensions. Nuclear power offers both low-carbon generation and firm electricity supply, supporting decarbonization while reducing reliance on intermittent sources, it said.
It is noted that ASEAN countries are at different stages of nuclear readiness. Vietnam has revived plans for large-scale nuclear projects, while Indonesia is considered well suited to small modular reactors (SMRs) and floating reactors because of its more than 17,000 islands and dispersed industrial demand.
Thailand is taking an options-open approach, while Singapore is focusing on building capabilities and assessing technologies, safety requirements and potential deployment. The Philippines also has a potential head start, with its 620-megawatt Bataan Nuclear Power Plant completed but never operated.
CGS said greater regional cooperation could reduce duplication and costs by allowing ASEAN countries to jointly assess technologies, share regulatory expertise and standardize quality requirements.
A coordinated approach could also strengthen the region’s bargaining position with technology suppliers and support the development of integrated nuclear supply chains.
Common safeguards and emergency preparedness could further strengthen public confidence, although nuclear regulation would remain under national jurisdictions, it said.
The research house also highlighted the potential of SMRs, whose economics could improve as standardization and factory-based manufacturing replace more bespoke construction. However, achieving cost competitiveness would depend on supply-chain maturity and repeated deployment, allowing the industry to move from first-of-a-kind projects towards more cost-efficient subsequent units.
For Malaysia, the opportunity extends beyond owning or operating a nuclear power plant, according to CGS.
It noted Malaysia has decades of experience in nuclear research and regulatory preparation, while its established capabilities in engineering, construction, electronics and instrumentation could be transferred to the nuclear value chain.
Cited Mott MacDonald Global Practice Leader-Nuclear Dr Ming Tan, it highlighted that the nuclear island, comprising the reactor core and specialist systems, accounts for only about 25 percent to 30 percent of a nuclear power plant, while the remaining 70 percent to 75 percent consists of more conventional infrastructure work.
This means Malaysian companies could potentially participate in nuclear-related projects through construction and other supply-chain activities even before the country commits to developing its own nuclear power plant, CGS said.
CGS maintained its Overweight rating on Malaysia’s utilities sector, saying the country was entering its most investable cycle in more than a decade as the energy transition expands beyond solar into broader capacity development.
It sees the successful policy implementation and accelerated capacity expansion potential catalysts for a sector re-rating.
Key downside risks, however, include delays to the National Energy Transition Roadmap and unfavorable regulatory changes.
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