THE ongoing conflict involving Iran is intensifying South-east Asia’s push towards nuclear energy, as governments confront the risks of heavy dependence on imported fossil fuels and increasingly volatile global supply chains.
Experts say the potential closure of the Strait of Hormuz, which handles about a fifth of global oil trade, has underscored the region’s exposure to external shocks, from price spikes to supply disruptions that strain electricity systems and broader economic stability.
The crisis has strengthened the case for diversifying national energy mixes, with nuclear power emerging as a more prominent long-term option to ensure reliable baseload electricity — the minimum level of demand required to keep power grids functioning.
“This is particularly so in South-east Asia, which is largely dependent on oil and gas from the Middle East,” The Straits Times (ST) cited Citibank commodity strategist Arkady Gevorkyan saying, adding that fuel disruptions have driven up electricity generation costs and made nuclear energy a more attractive alternative for stable power supply.
While interest in renewable energy has also grown, experts caution that sources such as solar and wind remain weather-dependent and can produce inconsistent output, limiting their ability to fully replace fossil fuels in the near term.
Nuclear energy, by contrast, offers continuous generation with minimal greenhouse gas emissions and a relatively small land footprint, making it suitable for energy-intensive sectors including heavy industry and data centres.
According to Tan-Soo Jie-Sheng of the Lee Kuan Yew School of Public Policy, interest in nuclear power had already been building prior to the conflict due to rising electricity demand, decarbonisation goals and land constraints.
“What the conflict has done is sharpen the energy security argument by highlighting how exposed the region remains to imported fossil fuels and geopolitical risks,” he told ST, noting that the crisis has “reinforced and accelerated” existing motivations rather than created new ones.
Comparisons have been drawn with Europe’s response to the Russian invasion of Ukraine, which prompted a rapid shift towards energy diversification, including expanded renewable capacity and reduced reliance on imported gas.
“Markets that rely on one source or two sources of energy for power generation are not immune to any sort of cataclysms or events when there is a power disruption,” Gevorkyan said, adding that alternative baseload sources can shield economies from price volatility and supply shocks.
Across South-east Asia, interest in nuclear energy is gaining institutional traction. Countries such as Vietnam, Indonesia, Thailand and Philippines have incorporated nuclear options into national power strategies, with feasibility studies and international partnerships under way.
Vietnam has signed an agreement with Russia to develop a nuclear plant with a capacity of 2,400 megawatts, targeting operations as early as 2030, while Indonesia has explored collaboration with Japan on potential projects in West Kalimantan.
In Malaysia, nuclear energy has been embedded in long-term planning under the 13th Malaysia Plan, with Deputy Prime Minister II Datuk Seri Fadillah Yusof emphasising the need to assess its feasibility amid shifting geopolitical and energy dynamics.
Meanwhile, Singapore is studying advanced nuclear technologies and strengthening international cooperation to better understand their potential deployment.
“Taken together, the region is not yet building nuclear plants, but it is clearly moving from initial interest toward institutionalisation, with policies, targets, and international agreements beginning to take shape,” said Dr Tan-Soo.
However, experts caution that nuclear energy remains a long-term strategy rather than an immediate solution. Significant investment, regulatory frameworks, skilled workforce development and careful site selection are required before projects can materialise.
Dr Dinita Setyawati said it could take years or even decades to establish the necessary infrastructure and governance systems, while Yao Lixia noted that high upfront costs and public concerns would continue to pose challenges.
“While the crisis has revived interest in nuclear as a secure, low-carbon baseload option, it is unlikely to lead to meaningful deployment in the short to medium term,” she said.
In the interim, some countries are turning to coal as a fallback option, despite its environmental impact, highlighting the difficult trade-offs between energy security and sustainability.
Dr Victor Nian described the conflict as a “wake-up call” for the region.
“In the short term, there is nothing much we can do but to ride out the storm,” he said.
“When looking long term, I’m sure nuclear energy and potentially even coal are among the top strategic options being seriously considered by ASEAN countries… Energy transition of the future might not be solely focused on decarbonisation, but energy security and economic security.”
Ultimately, analysts agree that while the crisis has elevated nuclear energy from a peripheral option to a central pillar of future planning, it does not shorten the timeline required for safe and responsible deployment. - May 3, 2026
