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.
Related:
Commentary: Is Singapore betting on nuclear energy over hydrogen and solar?
Commentary: The Johor-Singapore SEZ is a bold vision, but can it deliver on its promises?
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…
