Malaysia's Utilities Sector Boosted by Solar Expansion and Nuclear Plans
The Malaysian utilities sector is projected to expand with solar energy and nuclear power integration, maintaining an 'overweight' rating. The government's shift towards a 70% renewable energy mix by 2050 and the inclusion of nuclear energy in the 13th Malaysia Plan are pivotal for future energy stability.

UOB Kay Hian maintains an 'overweight' outlook on Malaysia's utilities sector, driven by anticipated growth in solar capacity and nuclear power initiatives. The government aims to phase out coal by 2050 and achieve a 70% renewable energy mix, with nuclear positioned as a reliable baseload source.
MyPower Corporation Malaysia has been designated as the Nuclear Energy Programme Implementing Organisation. The Atomic Energy Licensing Act (Amendment) 2025, effective December 25, establishes regulatory control over nuclear-related activities.
Nuclear projects demand significant capital investment, estimated between $4 billion and $10 billion per 1,000 MW unit, with long operational lifespans. In contrast, LNG and coal prices have risen sharply this year, further supporting the case for nuclear as a stable energy source. The report highlights Tenaga Nasional as a potential participant in nuclear asset ownership.




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