KUALA LUMPUR: Malaysia needs to move faster on small modular reactors (SMRs), regional nuclear safety frameworks and public-private financing models as the Government puts nuclear energy back on the table under the 13th Malaysia Plan, said Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
He said recent disruptions around the Strait of Hormuz had renewed the region’s debate over nuclear power as countries sought to balance energy security, affordability and sustainability amid rising baseload demand.
“The Hormuz crisis forced open a conversation this region has avoided for far too long, which is nuclear energy. As baseload demand rises, more countries are revisiting nuclear’s role in balancing energy security, equity, and sustainability,” Zafrul said in his keynote address at the 7th International Sustainable Energy Summit (ISES) 2026 today.
He said the government had “officially put nuclear back on the table” under the 13th Malaysia Plan, but stressed that setting the policy direction was insufficient.
“But putting it on the table is not enough. We must move fast on small modular reactors, regional nuclear safety frameworks, and public-private financing models so that nuclear becomes viable without breaking the back of the public purse,” he said.
Zafrul said SMRs could form part of Malaysia’s future energy mix as the country looks for additional sources of reliable baseload power.
He said the financing and regulatory frameworks needed to develop nuclear energy should evolve alongside technological advances in the sector.
In particular, he called for regional nuclear safety frameworks to support greater cooperation as Asean countries reassess the role of nuclear power in their respective energy mixes.
Zafrul said public-private financing models would also be needed to make nuclear projects viable without placing excessive pressure on government finances.
He said Malaysia’s approach should focus on developing a range of energy sources rather than relying on any single technology.
“Our security today will not come from any single source, no matter how abundant; it will come from the sheer breadth of the options we build,” he said.
He said the renewed nuclear discussion was taking place alongside Malaysia’s broader energy-transition efforts.
Under the National Energy Transition Roadmap (NETR), Malaysia is targeting renewable energy to account for 70% of installed capacity by 2050, while coal-fired power generation is targeted to be phased out entirely by 2044.
Zafrul said the combination of renewables and nuclear could support the region’s longer-term energy needs as countries seek to balance sustainability with energy reliability.
“This is where renewables, nuclear, and regional cooperation collide, and where the real opportunity lies,” he said.
