Malaysia delays nuclear power plant decision until four key studies are completed

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Malaysia delays nuclear power plant decision

Highlights

The Malaysian government has deferred its decision on developing a nuclear power plant until four key studies on technology assessment, sites, financing and the industrial roadmap are completed within 12 months.
Public acceptance and full compliance with IAEA standards are key deciding factors, with amendments to Act 304 coming into force on 1 Dec 2025 marking a transformation of the country's nuclear regulatory framework.
The Ministry of Science, Technology and Innovation received an allocation of RM1.29 billion under Budget 2027 to support the Madani Economy framework and the 13th Malaysia Plan.

This article was translated from the original. Read the original version by our correspondent here.

Studies on technology, sites and financing are underway

As reported by The Edge Malaysia, Minister of Science, Technology and Innovation Datuk Chang Lih Kang said the government would decide on the direction, technology and development of a national nuclear power plant only after four key studies under the nuclear energy technology development programme for electricity generation are completed over the next 12 months.

He said the studies are overseen by the Ministry of Energy Transition and Water Transformation and cover the owner-operator model and financing plan, site assessment and prioritisation, technology assessment, and an industrial development roadmap. He said the technology options include a range of alternatives, including land-based small modular reactors, floating small modular reactors and other options, depending on the country's suitability, needs and specific circumstances.

Chang said any decisions on technology, timelines and construction of a nuclear power plant would be made only after all the studies were finalised. He made the remarks while winding up the debate on the Supply Bill 2027, Budget 2027, at the policy stage for his ministry in the Dewan Rakyat on Monday.

Public acceptance and IAEA standards are key factors

Chang said nuclear energy is no longer considered a taboo issue by the government, but public acceptance remains a critical factor in determining whether the project can proceed. He said public opinion remains a priority, as sufficient awareness and advocacy are needed before such a proposal can be implemented.

To improve public understanding, the ministry introduced a nuclear advocacy component at the 2026 National Science Week Carnival, focusing on hands-on learning and engagement grounded in scientific facts. At the same time, he said Malaysia's nuclear regulatory regime now meets the standards of the International Atomic Energy Agency (IAEA), following amendments to the Atomic Energy Licensing Act 1984, Act 304, which came into force on 1 Dec 2025.

He said the amendments mark a comprehensive transformation of the country's nuclear and radiation regulatory regime and ensure full compliance with international standards covering safety, security and safeguards under the 3S framework. Earlier, Chang said his ministry received an allocation of RM1.29 billion under Budget 2027 to support the Madani Economy framework and the 13th Malaysia Plan.

In our earlier coverage of Budget 2027 allocations to strengthen the semiconductor industry, we reported how government and government-linked entity funding is intended to help local companies move up the value chain, including into integrated circuit design, as well as support for early-stage companies. The article also highlighted the need to accelerate the realisation of investment projects, strengthen domestic supply chains, and translate productivity gains into higher wages so that the benefits of industrial transformation are more widely shared.

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