Enthusiasm is building for small modular reactors in Southeast Asia, and Singapore – with its ambitions to stay ahead in energy-intensive frontiers such as artificial intelligence (AI) – plans to proactively look into the potential deployment of nuclear power.
To continue reading, subscribe to Eco‑Business.
There's something for everyone. We offer a range of subscription plans.
- Access our stories and receive our Insights Weekly newsletter with the free EB Member plan.
- Unlock unlimited access to our content and archive with EB Circle.
- Publish your content with EB Premium.
While no clear decision has been made on nuclear, Singapore will take further steps to build up its capabilities in the area and has committed to studying the potential deployment of atomic energy, said finance minister Lawrence Wong in his first budget speech as the city-state’s prime minister, on Tuesday.
Singapore will need to take these steps to “consider if there is a solution that it can deploy in a safe and cost effective way”, and the capabilities will also be needed for nuclear safety, which will “become more salient given the growing regional interest in nuclear power”, he said. Singapore is the smallest country in Asia by land area.
While the government evaluates nuclear power deployment as an option, it will also need to make major investments in new infrastructure, including renewables expansion. Wong announced a top-up of S$5 billion (US$3.72 billion) to the Future Energy Fund, a government fund for new energy technologies, to “support critical undertakings for securing clean power” for Singapore.
His comments on nuclear power technology follow new agreements that the republic inked with the United States last July in which both countries pledged to boost collaboration on civil nuclear issues. The US has openly shared that it is in talks with Southeast Asian nations to deploy small nuclear reactors, having discussed the matter with its Philippine and Thai counterparts in the past year.
Former United States secretary of state Antony Blinken (left) called on Singapore prime minister Lawrence Wong during his official visit in July 2024. The two countries signed agreements to deepen their understanding of civilian nuclear issues. Image: Lawrence Wong / X
Singapore will work on similar cooperation with other countries which have capabilities and experience in civilian nuclear power, especially small modular reactors, or SMRs, stressed Wong, although he did not name potential partners. Last December, Singapore’s Energy Market Authority also put out a tender for a year-long study into the viability of nuclear power.
The steps that Wong outlined in his budget speech signal the gas-dependent city-state’s serious consideration of nuclear power deployment – a slight deviation in tone from comments on nuclear made by its political leaders previously, which largely positioned nuclear as one of various clean energy sources Singapore is looking at, including geothermal and hydrogen.
Interest in SMR technology heating up
Experts told Eco-Business that with the shifts in modern nuclear technology, it is prudent that Singapore “at least consider its adoption through proper study”.
In 2010, the government had concluded that conventional nuclear technologies were not suitable for Singapore after a study, but in a more recent report that looked at Singapore’s future power sector aspirations, the city-state had already indicated nuclear as one of the solutions that will support the sector in meeting net zero targets in the coming decades.
“Even if it arrives at the same conclusions as the previous study, it will at least be an informed decision,” said Dr David Clive Broadstock, senior research fellow and energy transition research lead with the Sustainable and Green Finance Institute (SGFIN) at National University of Singapore, who added that time will be required for further assessment.
“In other words, domestic demand for electricity is likely to still outpace supply of clean energy for some years.”
Broadstock believed that Singapore has not ruled out hydrogen as an option. The city-state has “made preparations”, such as requiring new gas power generators to be hydrogen-compliant, “so it remains a pathway should the economics come to make sense”.
In his speech, Wong said there are inherent challenges in the production, storage and transportation of the energy source, which makes it hard to scale up in a commercially viable manner. These comments show that hydrogen remains “just in view as well as just out of touch”, said Broadstock.
Wong also highlighted that there are significant advancements in nuclear technologies, stating that SMRs have better safety features than conventional reactors and that several countries in Southeast Asia are planning to include nuclear in their energy mix. “Presently, only a few SMRs have been deployed around the world, but many more could become operational by the end of the decade,” he said.
Unlike traditional nuclear reactions which are massive facilities that take years to construct, SMRs are much smaller and are typically built on-site at factories, and can be delivered by truck or train. While several US companies are developing the technology and big tech firms like Microsoft and Google have indicated their interest, it hasn’t yet been deployed at scale, commercially.
Countries with operational SMRs are China and Russia. But the International Energy Agency (IEA) projected that Southeast Asia could have its first nuclear power plants by 2035. To date, the Philippines has said it aims to have its first plant by 2032, while Vietnam and Indonesia are considering adopting the technology.
Dr Victor Nian, chief executive of Singapore-based think tank Centre for Strategic Energy and Resources, said the move towards accelerating the adoption of nuclear power by the mega tech firms could have motivated the city-state to take further steps.
Singapore is focused on “keeping the lights on”, he said, and there is greater attention now on nuclear power to fuel the growth of the energy-hungry industries that are located here. But it must look beyond technical readiness and consider the social factors, as public acceptance is also important, said Nian.
The budget allocation to enhance the Future Energy Fund demonstrates the commitment of the city-state to develop safe, affordable and continuous clean energy solutions that may not exist today, said Josette Soh, sustainability and climate assurance partner of professional services firm Deloitte Singapore.
Clean energy access a ‘major national imperative’
In his budget speech, Wong stressed the importance of Singapore’s pursuit of technological progress as a driver of growth and said it will enable Singapore to “refresh its value proposition and stay ahead in a rapidly changing world”. He cited examples of American companies like Apple, Amazon, Alphabet and Tesla, which have helped to “propel the country’s dynamism and innovation”.
Singapore is home to the world’s top tech companies, said Wong, which already have substantial activities here and are keen to do more, including in new frontier areas like AI and quantum computing, but these “industries of the future” are highly energy-intensive and more clean power is needed to bring down carbon emissions.
Singapore expects that about one-third of its projected electricity demand can be met through electricity imports by 2035. It has initiated a pilot project with Peninsular Malaysia to import clean power and has expanded the capacity of a power trading initiative with Laos, Thailand and Malaysia.
Sustainability-related announcements made at Budget 2025, at a glance. Image: Budget Booklet, Ministry of Finance
To incentivise heavy vehicles and buses to make the switch to electric options, Wong introduced a new Heavy Vehicle Zero Emissions Scheme and a grant to co-fund the installation of related charging infrastructure on Tuesday. He noted that the adoption of clean energy variants has been slower among heavy vehicle owners due to limited model availability, higher upfront costs and less accessible charging facilities. More details are expected at the transport ministry’s budget debate.
Wong said the flat tax currently levied on electric vehicles (EVs) and light goods vehicles – which is meant to partially cover the fuel excise duties paid by equivalent internal combustion engine (ICE) vehicles – will be extended to electric heavy vehicles and buses starting from January 2026. The tax will be S$250 (US$186) a year for electric heavy vehicles, S$190 (US$142) for electric mini-buses and S$550 (US$410) for large electric buses.
While the government is considering how to design a suitable usage charge mechanism for EVs, Wong emphasised that they should not be exempted from usage charges despite being less pollutive than ICE vehicles.
While the government is considering how to design a suitable usage charge mechanism for electric vehicles (EVs), Wong emphasised that they should not be exempted from usage charges despite being less pollutive than internal combustion engine alternatives.
In response to the high probabability of a third of Singapore being vulnerable to flooding from sea level rise, coupled with high tides and storm surges, Wong also added S$5 billion (US$3.72 billion) to the coastal and flood protection fund, which was launched in 2020.
An additional S$100 (US$75) in the form of “climate vouchers”, also introduced in 2020, to buy energy- and water-saving appliances will also be disbursed to households residing in public housing flats. For the first time, the vouchers – totalling S$400 (US$298) – will be given to citizens living in private properties.
