Nuclear power: Key enabler to Malaysia’s economic development

By Dieter Billen

Malaysia is entering a decisive phase in its development journey. As the nation pursues its ambition to become a high-income, sustainable economy, energy security has emerged as a critical enabler. The 13th Malaysia Plan (13MP) sets out a bold vision for economic transformation, digitalization, and industrialization—all of which will drive energy demand to unprecedented levels. For senior decision-makers, the challenge is clear: how can Malaysia meet surging energy needs without compromising its net-zero commitments or economic competitiveness?

Renewables alone are not enough

Recent years have seen impressive growth in Malaysia’s renewable energy sector, with capacity rising from 8.5 GW in 2021 to 10 GW by early 2026. Yet, under the National Energy Transition Roadmap (NETR), the renewable energy sector is to make up around 70% of the national installed capacity mix by 2050, with coal-fired plants set to be phased out by 2044.

Intermittent sources like solar require significant storage investments to ensure reliability, driving up costs and threatening affordability. The country faces a classic energy trilemma: balancing security, affordability, and sustainability in a rapidly evolving landscape

Nuclear power: A strategic solution for Malaysia

Nuclear energy is gaining interest as a viable solution to address Malaysia’s energy trilemma. Nuclear offers reliable, large-scale, low-carbon baseload power that complements renewables and reduces dependence on imported fossil fuels.

Recognized under the 13MP as a clean, competitive, and safe energy source, nuclear is now firmly on the national agenda to support economic growth, industrial competitiveness, and job creation.

Recent advances in nuclear technology, especially Small Modular Reactors (SMRs), are changing the game. SMRs offer scalability, flexibility, and a smaller physical footprint, making them suitable for Malaysia’s needs. Their factory-based fabrication and shorter construction timelines lower financial barriers and enable deployment closer to demand centers. Enhanced safety features and improved fuel cycles further address public and regulatory concerns.

Looking ahead

Malaysia’s energy future will be shaped by the decisions made today. With 13MP formally placing nuclear energy on the national agenda and the development of institutional groundwork currently underway, Malaysia is well-positioned to take key decisive steps toward building its nuclear energy sector.

Any delay in nuclear power deployment would mean that the country will potentially face a shortfall in energy generation as energy demand rises as projected. The full study explores these dynamics in greater depth, offering actionable insights for leaders navigating this complex transition.

How can Roland Berger support?

Roland Berger is uniquely positioned to support clients across Southeast Asia in navigating the region's emerging nuclear energy landscape. With a dedicated energy and sustainability practice, led by on-the-ground team and supported by our deep global expertise, the firm offers end-to-end advisory services in the nuclear sector – spanning national nuclear program strategy, regulatory and institutional framework development, technology assessment (including SMR feasibility), stakeholder management, and capital project planning.

Roland Berger can assist governments, utilities, and investors make informed decisions, de-risk investments, and accelerate the path from policy ambition to operational nuclear capacity in Southeast Asia.

Register now to access the full study. Furthermore, you get regular news and updates directly in your inbox.