Commentary: The Johor-Singapore SEZ will need a lot of energy – nuclear power might be the key

CNA

a day ago

SINGAPORE: The Johor-Singapore Special Economic Zone (JS-SEZ) is set to become a defining project for industrial and economic collaboration between Malaysia and Singapore. What the new economic corridor will need is stable, 24/7 carbon-free energy.
Both countries face energy challenges that could undermine the long-term viability of the JS-SEZ. It is an opportunity for a strategic nuclear partnership.
Singapore relies heavily on imported natural gas for electricity, exposing it to volatile prices and supply risks. It aims to achieve net-zero emissions by 2050, but electricity demand is expected to grow by 3 per cent to 5 per cent every year. Malaysia intends to increase its renewable energy capacity to 40 per cent by 2035, but intermittency (how consistently supply can be generated) and dispatchability (how supply can be adjusted to meet off-on demand) are challenging at a large scale.
Current clean energy solutions can't quite keep up with the energy-intensive sectors like heavy manufacturing and data centres the JS-SEZ counts on attracting. Solar energy cannot provide round-the-clock reliability even with battery energy storage, while hydrogen is expensive and lacks infrastructure and regulations for large industrial applications.
Nuclear energy, on the other hand, offers a more realistic solution. It has been proven to provide reliable baseload electricity with zero emissions, such as in France, Spain, South Korea and the United States.
NUCLEAR ENERGY MAKES STRATEGIC SENSE
Incorporating a nuclear energy partnership into the JS-SEZ framework would offer multiple benefits.
Consider the Krsko Nuclear Power Plant, located in Slovenia near the Croatian border. Slovenia and Croatia each own a 50 per cent stake, sharing the electrical output and responsibility for nuclear waste equally. Krsko has delivered stable electricity to both countries for decades.
A similar model could work for the JS-SEZ, bringing together Malaysia land availability and regulatory readiness and Singapore's financing capabilities and intention to import clean energy from the region.
Malaysia and Singapore already have an electricity interconnector that allows energy to be transferred between the two national grids. It is currently used to import renewable electricity from Laos to Singapore, and from Malaysia to Singapore, with remaining capacity to carry more.
There is also opportunity for collective technology transfer and supply chain development. Japan, South Korea and China have strengthened domestic nuclear industries, creating skilled jobs and new export options, through partnerships with established nuclear states. The JS-SEZ could do the same for Malaysia and Singapore.
Talent development is already stated as a goal of the JS-SEZ. Nuclear energy requires a highly skilled and well-educated workforce. Both Malaysia and Singapore have the ability and the motivation to form academic and vocational training programmes supporting the nuclear energy sector.
A joint nuclear project would also position Singapore and Malaysia as leaders within the Association of South-East Asian Nations (ASEAN) in the area of civilian nuclear cooperation, which would shape the region's future and spur international investment.
MOVING FROM CONCEPT TO REALITY
Such an extraordinary partnership will not be easy to pull off. But there is a clear path to success that builds on the existing relationship between the two countries and past efforts.
Small Modular Reactors (SMRs) in particular, are promising. They are safer, more flexible and require less capital investment than traditional large-scale reactors, as seen in countries that have already deployed or are actively pursuing deployment of SMRs. Singapore and Malaysia have the opportunity to benefit from their expertise and experience.
Another critical step is to develop a transparent ownership and governance framework. Financing via public-private partnerships makes sense, in the context of JS-SEZ. And international best practices illustrate how to balance risk with reward while ensuring strict adherence to regulatory compliance.
Most importantly, a bilateral task force could assess the feasibility of a shared nuclear facility and address concerns over nuclear safety, security and safeguards. A task force provides a platform to jointly engage all stakeholders, especially strategic international partners.
This is critical: Engaging with established nuclear states, as well as independent technical organisations, experts and think tanks are necessary for success. This ecosystem approach would boost Malaysia and Singapore's access to the latest technology and maximise economic, social and environmental benefits.
A BOLD STEP FOR THE FUTURE
There are steps that both countries can take on their ends too.
Singapore, as a global finance centre, could prioritise a policy and sustainable investment framework to allow a cross-border nuclear project, followed by a dedicated investment fund. It could accelerate research and regulatory development to shorten the runway to nuclear readiness.
The need for a Singapore nuclear energy programme implementation organisation (NEPIO) will quickly emerge. MyPOWER, under the Malaysia Ministry for Energy Transition and Water Transformation, has been tasked as the country's NEPIO.
Singapore could also expand education and training programmes to create a talent pool within the next decade, establishing its scientists, engineers, policymakers, and finance and legal professionals as leaders in the field.
Malaysia could focus on its nuclear energy policy and regulatory environment. Establishing a clear roadmap for nuclear energy deployment that includes JS-SEZ is necessary to facilitate confidence.
Malaysia could also build on the strength of the Malaysia Nuclear Agency to help establish the state of Johor as a regional hub for nuclear energy services attracting international technology and engineering companies and promoting local supply chains that support the nuclear industry.
THE PUBLIC FACTOR
As with all discussions around nuclear energy – and reasonably so – much attention is needed to address domestic social and political sensitivities and geopolitical considerations.
Both nations should collaborate to address public concerns about nuclear safety and waste management. Again, there are international examples to follow.
South Korea and Finland engaged with their citizens to build support for nuclear adoption. A Singapore-Malaysia endeavour would also need to proactively be transparent in communication and initiate public consultations and educational initiatives to help shape public attitudes.
Singapore and Malaysia can take bold steps toward nuclear collaboration, ensuring a resilient, low-carbon future for the JS-SEZ and beyond.