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BUSINESS OPPORTUNITY IN
MALAYSIA’S NUCLEAR MARKET
by:
Muhamad B. Lebai Juri, PhD
Director General, Malaysian Nuclear Agency
43000 Kajang, Malaysia

UKTI Jan 2014
PRESENTATION OUTLINE
 Overview of nuclear science and technology in
Malaysia
 Nuclear 3S Infrastructure
 Strengthening Human Capital Development
 Nuclear supply chains
 Public acceptance
 Conclusion
OVERVIEW OF NUCLEAR SCIENCE AND
TECHNOLOGY IN MALAYSIA
NATIONAL KEY ECONOMIC AREAS
NUCLEAR

Civilian

Military

(PEACEFUL USE)

(WEAPON)

Power

(Electricity Generation)
 Nuclear Reactor
Tech.
 Thorium Fuel Cycle
 Nuclear Waste
Management

Non-Power

(Various Applications)






Industry
Medical
Agriculture
Manufacturing
Environment
MAJOR NUCLEAR INFRASTRUCTURES
IN MALAYSIA

GAMMA IRRADIATOR

E-BEAM

RESEARCH REACTOR

(4)

(7)

(1)

Irradiation plant
industrial and medical
products using gammarays

Irradiation plant using
electron beam

Irradiation facility research
materials and isotope
production using neutron
source
MAJOR NUCLEAR INFRASTRUCTURES
IN MALAYSIA

SECONDARY STANDARD DOSIMETRY
LABORATORY (SSDL)
(1)

Calibration of radiation
measuring instruments and
dosimeters

LATEX VULCANIZATION IRRADIATOR
(1)

Research & Production of Irradiated
Vulcanised Rubber Latex
MAJOR NUCLEAR INFRASTRUCTURES
IN MALAYSIA

RADIOACTIVE WASTE
MANAGEMENT CENTER
(1)
Compliance to Atomic
Energy Licensing Act
1984

RADIOCHEMISTRY AND
ENVIRONMENT
LABORATORY
(1)
Environmental
radioactivity
measurements

NON DESTRUCTIVE TEST
LABORATORY
(1)
Diagnosing defects of
componets and system
reliability
MAJOR NUCLEAR INFRASTRUCTURES
IN MALAYSIA

GAMMA GREEN HOUSE

RADIOISOTOPE LABORATORY/CYCLOTRON

(1)

(4)

Mutation breeding research

Production of radioisotopes,
radiopharmaceuticals (3) &
radiopharmaceuticals kits (1)
Revenue
Nuklear Malaysia 1988-2013
16

15.21

15.18
13.78

14
12.7212.62

12.50

12

11.98

12.43

12.7

RM (Miliion)

10.73
10

9.17

9.78

9.92

8.30
8

7.19
5.72

6

5.01 5.03
3.96

4

2.95

3.48
2.73

1.71 1.77

2
0.33

0.83

0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Year
APPLICATION OF RADIATION SOURCES
 Licensees for medical and non-medical sectors
 Distribution of radiation workers in various sectors
NDT 2%

INDUSTRIAL
43%

MEDICAL 55%

Non-Medical Sector
•Irradiation facilities
(Sterilization)
•Gauges
•Industrial radiography
•Oil and Gas
•Mineral processing
•Research and Education
•Sales
DISTRIBUTION OF X-RAY MACHINE &
RADIOACTIVE SOURCES
• X-ray machine ( 62%)
• Radioactive source (38%)
Contribution of NA toward the GDP (2012)
• GDP increment of 0.024% (RM 138.64 million) in 2006 to
0.032% (RM 236.62 million) in 2008.
• Increment of GDP per capita from RM 5.31 in 2006 to
RM 8.76 in 2008.
NUCLEAR SAFETY, SECURITY and
SAFEGUARD INFRASTRUCTURE
NUCLEAR SAFETY INFRASTRUCTURE
• 1968 Radioactive Substances Act
• 1984 Atomic Energy Licensing Act
• 20_ _ New Atomic Energy Licensing Bill (under
purview of Ministry of Science, Technology and
Innovation, MOSTI)
ENFORCEMENT
CONTROLS
Radioactive Material
Nuclear Material
Irradiating Apparatus
Prescribed Substance

Regulatory Body
Atomic Energy Licensing
Board &
Department of AELB

MALAYSIAN LEGAL
INFRASTRUCTURE
Licensing Authority for
Medical Purposes
Director General of
Health

Atomic Energy
Licensing Act 1984
(Act 304)
LEGAL INFRASTRUCTURE
Act
304

Regulations
License
Conditions

To provide for the regulation and
control of atomic energy;
For matters connected therewith or
related thereto
•Licensing Regulations
•BSS Regulations
•Transport Regulations
•Appeal Regulations, etc.

Section 17, Act 304
INTERNATIONAL MEMBERSHIP
• Association of Southeast Asian Nation (ASEAN)
Membership since 1967
• International Atomic Energy Agency (IAEA) Membership
since 1969
• Regional Cooperative Agreement (RCA), signed 1975
• International Project on Innovative Nuclear Reactors and
Fuel Cycles (INPRO) Membership since 2012
• Forum for Nuclear Cooperation in Asia (FNCA) 20??
INTERNATIONAL INSTRUMENTS RELATED TO 3S
SIGNED BY MALAYSIA
• Non-Proliferation Treaty - 1968
• Safeguards Agreement -1972
• 1986 IAEA Convention on Early Notification of a Nuclear
Accident - 1987
• 1986 IAEA Convention on Assistance in the Case of a
Nuclear Accident or Radiological Emergency - 1987
• South East Asia Nuclear Weapon Free Zone (SEANWFZ),
signed -1995 & Ratified - 1996
• Comprehensive Nuclear Test – Ban Treaty (CTBT), signed
-1998 & ratified - 2008
• Additional Protocol - 2005
NUCLEAR SECURITY

• As a signatory to NPT & a member state of the IAEA,
Malaysia reaffirms its commitment to non-proliferation as well
as to implementation of its obligations under the NPT
Safeguards Agreement.
• Malaysia support robust practices on Nuclear security
including export control system.
• Dec 2012, Malaysia/AELB was officially recognized by IAEA
as a Security Support Centre.
Some Initiatives in the
Implementation of 3S
• Global Threat Reduction Initiative, GTRI
(US)
• RN42 (CTBTO)
GTRI, Nuclear Malaysia
Equipments installed:
• High security lock
• Motion sensor
• CCTV dome
• Electric lock
• Security grating
• Exit button
• Glass break sensor
• Siren and strobe
• Radiation detector
22
Sinagama

Alarm Keypad
High Security Lock
Special Film Window
Motion Sensor
Glass Break Sensor
Gamma Green House

SUMMARY
Wire mesh
Source Security Grating
CCTV, Security Grating

Underground fibre optic ground sensor
4 set of gamma and neutron
detectors
27
28
Radionuclide Monitoring
Station, RN 42 (CTBTO)

Tanah Rata, Cameron Highland
Compressed Filter

AIR

2

IDC
Compressed Filter

Filter

1
Masuk

DECAYMBER
24 hrs

3

VSAT
ANTENNA

Out

24 hrs
AIR
SAMPLER

GAMMA
24 hrs
DETECTOR

COMPUTER &
ELECTRONICS
LOCAL COLLABORATION TO ENHANCE NUCLEAR
SAFETY AND TECHNOLOGY
Multilateral
Cooperation
Regional
Cooperation

R&D
Institutions

Universities

Private Sector
(Industries)

Bilateral
Cooperation

Government
Agencies

Ministries

NGO: MARS, MNS
MARPA, NDT Soc
INT. COLLABORATION TO ENHANCE NUCLEAR
SAFETY AND TECHNOLOGY

CTBT

Non
Proliferation
Treaty
(since1968)

IAEA –
Contract
Research
Projects
(12)
Forum for
Nuclear
Cooperation
Agreement
(FNCA)
(7)

IAEATechnical
Cooperatio
n Projects
(6)
IAEARegional
Cooperation
Agreements
(9)

Others
(such as EU,
ASEANTOM)

International
Project Innovative
Nuclear
Reactors & Fuel
Cycles (INPRO)

(1)
NUCLEAR POWER DEVELOPMENT
Malaysia Energy Mix
Fuel Sources

% (components of the mix)

Gas

50%

Coal

40%

Hydro

8%

Renewal Sources (e.g. Biomass, Solar etc)

2%

Nuclear

none
7 Jan. 2011: Incorporation of MNPC as NEPIO

10 Dec. 2010: Decision to establish NEPIO
25 Oct. 2010:
Economic Transformation Program (ETP) launched with
nuclear power deployment included
16 July 2010:
Cabinet Decision take cognisance National Nuclear
Policy
10 June 2010:
New National Energy Policy incorporated in Tenth Malaysia Plan
with nuclear energy as longer term option for the Peninsula.
26 June 2009: Nuclear energy adopted as one of fuel options
for electricity supply post-2020, especially for the Peninsula;
10 Sept. 2008: Decision to draft National Nuclear Policy
29 Aug. 2008: 2009 Budget in Parliament to explore nuclear energy
& formulate new National Energy Policy
DETAILED TIMELINE ON NUCLEAR POWER DEPLOYMENT
Project Development
Start Feasibility
Study (FS)
& Bid Specifications
including basic
& detailed design
& site investigation
Finish Pre-FS
(PFS)

YR1
Complete
Regulations
Desk-top Site
Survey & Ranking
Govt. Policy
Decision on
Nuclear Project
& Plant Type

Financial Planning & Closure
Bid Specifications
& Issue Request
for Proposals (RFP)
Finish Detailed
Plan

First Concrete Pouring
Contract
Award

NPP Vendor
Procurement
of Components

Bid
Evaluation

YR2

40-month Construction Period
Initial Power Supply

Start Site Excavation

Finish FS

Set Reactor
Pressure Vessel

Site Grading

YR3

Detailed Site
Investigations,
EIA/RIA/SIA
with input from
NPP vendor on
plant design
Final Site Selection

Sign/Accede/Ratify International Instruments
& National Legislative Development

YR4

YR6

YR5

Preliminary
Safety Analysis
Report (PSAR)
for Site Permit

Nuclear Fuel Loading

YR7

YR8

YR9

Cold
Hydrostatic
test

YR10

Commissioning
8-month

YR11

YR12

Pre-Operational Baseline
Radiological Data Gathering
Site Permit

Final Safety Analysis Report
(FSAR) for Operating Licence

Construction Permit

Programme & Legislative Development

Operator Training
Operating
Licence

Point of
No Return

Infrastructure Assessment & Planning
& Project Management, Bid Evaluation
& Safety Assessment Training
Continuous Stakeholder Involvement, Public Information Programme & Long-Term Supporting Human Capital & Industrial Development & Technology Acquisition
Regulatory & Quality Assurance Training & Implementation & Technological Support Organisation (TSO) Development

Source: Nuclear Malaysia; Malaysia NKEA OGE Laboratory

37
Nuclear Power in Malaysia
•
•
•
•

Government policy
Human Capital
Industry’s capability/capacity
Public Acceptance
An update on National Energy Policy
• Currently under development by Economic Planning Unit
(EPU), under the Prime Minister Department
• The report expected to be available early 2014
• National new energy policy timeframe is until 2050
– Nuclear is considered as one of the options for electricity
generation – but STILL NO CLEAR DECISION
STRENGHTENING HUMAN
CAPITAL DEVELOPEMENT
FRAMEWORK FOR NUCLEAR HRD PROGRAM FOR
MALAYSIA
Government

Nuclear R&D Institutes

• Nuclear Policy and Promotion
• Planning of Nuclear Power
• Nuclear Regulation and Control

• Development, Acquisition,
Dissemination of Nuclear Power
Technology
• Nuclear Manpower Training

• Licensing and Inspection
• Evaluation and analysis of
Nuclear Safety

Nuclear HRD Program

Education Institutions
•
•
•
•

Regulatory Authority

Industries

(All must work in tandem)

Education in Nuclear Eng
Education in Nuclear S&T
B.Sc, MSc PhD Degree
Vocational Education Level
Utilities/Operator
• Operation & Maintenance of NPP
• In-house Training for NPP Personnel

• Construction, design & A/E
• Manufacturing of component
and Equipment
Society & Associations
• Malaysian Nuclear Society
• MSNT, MARPA
• MARS

41
Age

Schooling
Years

26

21

25

20

24+

19

24

18

23

17

22

16

21

15

20

14

19

13

18

MALAYSIA EDUCATIONAL PATHWAYS

12

17

11

16

10

World of Employment/ Entrepreneurship
Postgraduates
Degree
Universities & Higher
Education
University
Institutions
Colleges

Polytechnic/
College
Community
Diploma

Vocational
Qualifications
Certificate

Sixth
Form –
Higher
School
Certificate

Matriculation

POLYTECHNICS
Community Colleges

Skills Certificate

School Certificate (11 years of education)
Secondary
Academic
Schools

Technical
Schools

Lower Secondary (3 years)
Primary (6 years)
Source: MOHE

Technical &
Vocational
Institutions

Vocational
Schools

Skills Training
Center

Ages 13 to 15
42

Ages 7 to 12
42
LIST OF UNIVERSITIES WITH
NUCLEAR RELATED EDUCATION

INSANIAH University
College
Universiti Malaysia Perlis

Universiti Malaysia Kelantan

Universiti Utara Malaysia
AIMST University
Universiti Sains Malaysia

Universiti Darul Iman Malaysia

Universiti Terbuka Wawasan

Universiti Malaysia Terengganu

Universiti Teknologi PETRONAS

Universiti Pendidikan Sultan Idris

UniversitiTenagaNasional (UNITEN)
Elective subject-Nuclear Technology

Universiti Malaysia Pahang

UniversitiKebangsaan Malaysia
Bachelor Programme: Nuclear Science
Elective subject: Nuclear Law

Universiti Sains Islam Malaysia
INTI International University College
Nilai International University College

Univerisiti Teknikal Malaysia Melaka

Master Programme-Nuclear Engineering

UniversitiTunHussienOnn Malaysia

Bachelor Programme-Nuclear Engineering UniversitiTeknologi Malaysia
HIGHER EDUCATION INSTITUTIONS
Source: MOHE

Higher Education Institutions In Malaysia (May 2011)
Types of Institution

Total

Public Universities

20

Polytechnics

27

Community Colleges

70

Private Universities/University Colleges

52

Private Colleges

403

Total

572

Level of
study

2008

2009

2010

2015
(projection)

PhD

12,240

14,600

17,700

21,500

M.Sc

36,000

45,000

49,500

60,400

B.Sc

270,000

272,000

275,000

334,000

Total

318,240

331,600

341,700

415,900
44
Moving Forward: NUCLEAR CONSORTIUM IN
EDUCATION, RESEARCH AND TRAINING
• To facilitate the development of nuclear related
education, research and training program in Malaysia
• Establish collaboration platform between Malaysian
Nuclear Agency and local educational institutes
• Sharing of resources and expertise
• Sharing of facilities from Malaysian Nuclear Agency and
local educational institutes
KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT
Possible / Current Approaches

Challenges
National
level

▪
▪
▪
▪
•
•

Transformation of existing education policy
Employment prospect (job scheme,
incentive, etc)
Amendment of foreign workers policy
Attracting and retaining foreign and local
talent
Inadequate nuclear education programs
(coordination, programs, etc).
Limited funding and quota for training

▪
▪
▪
▪
▪
▪

▪
Technical
Support
Organisation

▪
▪
▪
▪
▪
▪

Improving Human Resource Management
(HRM) and support system
Inadequate personnel
Conflict of interest (R&D vs. TSO)
Clarification of roles of TSO in NPP
Improving Employment system
Funding & Coordination (cross ministry)
Limited funding, quota and time for
trainings

▪
▪
▪
▪
▪

Establish Multi-lateral and bi-lateral
cooperation
Attract expatriate personnel who have
work in nuclear sector abroad
Engage experienced consultants
Formulation of National Nuclear Policy
and National Energy Policy
Develop and improve HRD
infrastructure e.g. National Nuclear
Training Centre
Establish National HRD Roadmap
Fast-tracking nuclear related education
for TSO personnel
Deployment plan for TSO personnel
Aptitude and attitude test
Continuous capacity building program
Examples: Nuclear Malaysia,
Universities, Industries

46
KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT
Operating
Organisation

Challenges

▪
▪
▪
▪

Willingness of vendors to offer HRD
package solely
Personnel’s keenness to convert
into NP personnel
Transformation of remuneration
package
Inadequate competent and
experienced personnel

Possible / Current Approaches

▪
▪
▪
▪
▪
▪

Regulatory
Body

▪
▪
▪
▪
▪

Amendment of existing nuclear act
Inadequate number and experienced
personnel
Remuneration scheme
Nuclear law education
Limited quota for training

•
•
▪
•

Collaboration with vendors in HRD
Convert conventional power plant
engineers to be competent in NP O&M,
commissioning, etc.
Recruitment of experienced oil and gas
personnel under deployment plan
between companies
Offer higher incentives and remuneration
Licensed and certified NPP personnel by
2021
Aptitude and attitude test
Continuous capacity building in nuclear
legislation
Engagement of external assessors and
transfer of expertise to local regulators
Aptitude and attitude test
Examples: AELB, Energy Commission

47
KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT
Challenges

Possible / Current Approaches
Education
Institute

▪
▪
▪
▪
▪
▪

•
Industry

▪
▪
▪
▪

No nuclear power related education
program in higher learning institutions
Lack of competent and experienced
lecturers in nuclear education
Future prospect for nuclear educated
students are still not clear
Lack of promotion for nuclear education
Inadequate nuclear research and
experimental facilities
Need to produce nuclear craftsmen and
technician

Uncertain roles and participation of
industry in NPP
Inadequate integration between national
and education institutes
Coordination between industries
Deployment of competent industry’s
workforce into nuclear power program
Nuclear safety culture

▪

▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

Introduce nuclear engineering courses as
elective in engineering courses at
undergraduate level (for familiarization to
engineering students)
Introduce nuclear engineering courses at
Master level (to produce nuclear engineer)
Establish consortium of universities
Establish network with international renowned
universities and research institutions
Joint education programs with other
organizations (JICA, JAEA, KAIST, KINS, etc)
Fellowship, training course and internship
Formal courses of overseas study
Non-power nuclear application industry is
quite establish
Attract industry key players to participate
in NPP
Capacity building
Possible deployment of key personnel in
industry to participate in NPP
48
NUCLEAR SUPPLY CHAIN –
POTENTIAL AREAS
NUCLEAR SUPPLY CHAIN IN CONSIDERATION
1)The choice of reactor design & type
eg Pressurized Water Reactor - PWR, VVER,
AP1000 , EPR etc
Boiling Water Reactor – BWR, ABWR etc
2) Consortium structures established
Reactor Vendors ( Westinghouse, AREVA, KEPCO,
Toshiba etc ) & their chosen/selected nuclear suppliers ( local and/or
international companies ) to support the construction of the nuclear power
reactor and plant.
NUCLEAR SUPPLY CHAIN IN CONSIDERATION
3 a) Availability and/or lead times of critical components and
services
eg Reactor Pressure Vessel (RPV) , Steam Generators,
pipework and valves, and main Engineering, Procurement and
Construction (EPC) contractor , plant management capacities, etc
- which could lead to delays in a national nuclear new build,
and/or to cost escalation.
b) It would be strategic and imperative to review and identify/determine
what would the countries and companies need to develop or
produce components , which currently (or in future) cannot be
obtained from overseas suppliers without long delays, which
could ultimately threaten both the:
• security and
•
affordability of energy supplies
NUCLEAR SUPPLY CHAIN IN CONSIDERATION
4. Many capable companies exist in Malaysian industry but they lack nuclear
experience, where specifications are often different from usual industry
standards
Thus local companies must be introduced to and updated
regarding Codes ,Standards and Accreditation by International
Organizations including the ASME, USA etc
a) In striving to enter the nuclear industry sector
b) to ensure public safety
c) facilitation of international business acceptance and
d) enhance export opportunities
5. WNA – Economy of scale in supply chain and transfer technology, a
minimum number of new builds should not be less than 10 power plants.
ROLE OF NUCLEAR MALAYSIA AS A NUCLEAR POWER
R&D and TECHNICAL SUPPORT ORGANISATION (TSO)

ROLE OF NUCLEAR MALAYSIA AS A NUCLEAR POWER R & D and TECHNICAL SUPPORT
ORGANISATION (TSO)
NEPIO
(MNPC)

NPP Owner SPV

Planning &
implementation
coordination

NPP Operator SPV
Technical
support

TSO
(Nuclear Malaysia)
Regulate

National
Regulators
(AELB, ST, DOSH,
DOE, MHLG)

Malaysian Industries

Malaysian Educational
& Training Institutions

supply

NPP Vendor
Single Turnkey
Contractor
Vendor Country
TSO
Vendor Country
Regulators

Vendor Country
Industries
Vendor Country
Educational
&Training Institutions
53
PUBLIC ACCEPTANCE SCENARIO IN
MALAYSIA
• The decision by government to explore nuclear option for
electricity generation attract mixed reaction from the
public – pro and against;
• It is becoming increasingly challenging in Malaysia to
implement technologies because of the widespread public
opposition, influential non-government organizations
(NGOs) and also strong sentiment from minority groups;
• Public records and news sources covering the reactions of
these groups towards various beneficial projects requires
more sophisticated PI/PA strategies to be employed
Asian Rare Earth (ARE) Processing Plant
Plant Broga
Incinerator Project

300 MW Eastern
Sabah Coal

http://www.freemalaysiatoday.com/category/nation/2013/06/08/oil-and-gasrich-sabah-looking-at-coal-again/
Fukushima Accidents
Lynas Advanced Material Plant (LAMP)
Lynas Advanced Material Plant (LAMP)

“For Malaysia and
the world’s most
advanced
technology
companies, the
plant is a gamble
that the processing
can be done safely
enough to make
the local
environmental
risks worth the
promised global
rewards.”- The
New York Times
Biggest Challenge of Public Acceptance
at National & Local Levels in Malaysia
PUBLIC INFORMATION & ACCEPTANCE TARGETS: 70% public acceptance by end 2012

NATIONAL PUBLIC OPINION
Why nuclear?
Why not solar?
Is it safe?
What about the waste?
Isn’t it too expensive?
Where to get the fuel?
Nuclear accidents?
Public radiation exposure?
Environmental impacts? Yes,
but not in my backyard!

STATE GOVERNMENTS
Why build in this State?
Won’t we lose the next election?
Is it safe? What benefit to the State?

MUNICIPAL AUTHORITIES
Why build in this district?
Is it safe for the people?

LOCAL POPULATION
NIMBY BANANA!*
,
GENERAL CIVIL SOCIETY & PUBLIC STAKEHOLDERS
civic society, mass media, non-governmental organisations (NGO’s),
religious, women & other civic organisations, teacher training colleges,
university & school students, general public.
STATE & LOCAL STAKEHOLDERS AROUND NUCLEAR PLANT SITES
local government, community leaders, village heads,
local associations, such as farmers & fishermen associations, schools, etc.
*NIMBY
*BANANA

= Not in My Backyard
= Build Absolutely Nothing Anywhere Near Anything

Why build here?
Is it safe for us?
Accident effect?
Won’t our food, fish,
vegetable supply
be contaminated?
Our children?
Our river, our beach?
Public Opinion Survey
Pre-Fukushima
The use of nuclear energy as one of the
ways to provide electricity in Malaysia.

Opinion on the role of nuclear
energy
in Malaysia

No answer/
respond

4.1
very important

11.2

Don't Know
Somewhat important

52
32.7

Somewhat Oppose
not too important
Strongly Oppose

not an important at all

Somewhat Favor

52.0 % think that the role of nuclear energy in
Malaysia is very important.

Strongly Favor
0

10

20

30

40

50

79.6 % favor of the use of nuclear energy to
provide electricity (42.9 % strongly favor and
36.7% somewhat favor).

Post-Fukushima

Survey in 2012 (MSc Student)
• 47.1% Support NPP
• 29% Disagree
• 16.5% Malaysia Not ready
• 7.4% Neutral
Strategy: PUBLIC ENGAGEMENT GOALS
OVER 10 – 15 YEARS

Public
Participation;
Define overall
approach and
strategy/policies.

Obtain local
support at
recommended
site(s).

Educate broader
Malaysian
population on
nuclear power
deployment in
Malaysia’s energy
mix.

Develop
Malaysian public
participation
infrastructure.

~ 10 – 15 years

63
1. The current nuclear industry in Malaysia is concentrated in
non-power applications
2. The nuclear industry has progressed in Malaysia and
positively contributed to socio-economic development of the
country
3. Realization of nuclear power program in the future will offer
significant prospect for Malaysian industry as well as access to
advanced technology and business opportunities
4. Continuous improvement in terms of infrastructure, resources
and capability is continent to uplift local nuclear industry
THANK YOU

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Market Briefing. Malaysia. 27th January

  • 1. BUSINESS OPPORTUNITY IN MALAYSIA’S NUCLEAR MARKET by: Muhamad B. Lebai Juri, PhD Director General, Malaysian Nuclear Agency 43000 Kajang, Malaysia UKTI Jan 2014
  • 2. PRESENTATION OUTLINE  Overview of nuclear science and technology in Malaysia  Nuclear 3S Infrastructure  Strengthening Human Capital Development  Nuclear supply chains  Public acceptance  Conclusion
  • 3. OVERVIEW OF NUCLEAR SCIENCE AND TECHNOLOGY IN MALAYSIA
  • 5. NUCLEAR Civilian Military (PEACEFUL USE) (WEAPON) Power (Electricity Generation)  Nuclear Reactor Tech.  Thorium Fuel Cycle  Nuclear Waste Management Non-Power (Various Applications)      Industry Medical Agriculture Manufacturing Environment
  • 6. MAJOR NUCLEAR INFRASTRUCTURES IN MALAYSIA GAMMA IRRADIATOR E-BEAM RESEARCH REACTOR (4) (7) (1) Irradiation plant industrial and medical products using gammarays Irradiation plant using electron beam Irradiation facility research materials and isotope production using neutron source
  • 7. MAJOR NUCLEAR INFRASTRUCTURES IN MALAYSIA SECONDARY STANDARD DOSIMETRY LABORATORY (SSDL) (1) Calibration of radiation measuring instruments and dosimeters LATEX VULCANIZATION IRRADIATOR (1) Research & Production of Irradiated Vulcanised Rubber Latex
  • 8. MAJOR NUCLEAR INFRASTRUCTURES IN MALAYSIA RADIOACTIVE WASTE MANAGEMENT CENTER (1) Compliance to Atomic Energy Licensing Act 1984 RADIOCHEMISTRY AND ENVIRONMENT LABORATORY (1) Environmental radioactivity measurements NON DESTRUCTIVE TEST LABORATORY (1) Diagnosing defects of componets and system reliability
  • 9. MAJOR NUCLEAR INFRASTRUCTURES IN MALAYSIA GAMMA GREEN HOUSE RADIOISOTOPE LABORATORY/CYCLOTRON (1) (4) Mutation breeding research Production of radioisotopes, radiopharmaceuticals (3) & radiopharmaceuticals kits (1)
  • 10. Revenue Nuklear Malaysia 1988-2013 16 15.21 15.18 13.78 14 12.7212.62 12.50 12 11.98 12.43 12.7 RM (Miliion) 10.73 10 9.17 9.78 9.92 8.30 8 7.19 5.72 6 5.01 5.03 3.96 4 2.95 3.48 2.73 1.71 1.77 2 0.33 0.83 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year
  • 11. APPLICATION OF RADIATION SOURCES  Licensees for medical and non-medical sectors  Distribution of radiation workers in various sectors NDT 2% INDUSTRIAL 43% MEDICAL 55% Non-Medical Sector •Irradiation facilities (Sterilization) •Gauges •Industrial radiography •Oil and Gas •Mineral processing •Research and Education •Sales
  • 12. DISTRIBUTION OF X-RAY MACHINE & RADIOACTIVE SOURCES • X-ray machine ( 62%) • Radioactive source (38%)
  • 13. Contribution of NA toward the GDP (2012) • GDP increment of 0.024% (RM 138.64 million) in 2006 to 0.032% (RM 236.62 million) in 2008. • Increment of GDP per capita from RM 5.31 in 2006 to RM 8.76 in 2008.
  • 14. NUCLEAR SAFETY, SECURITY and SAFEGUARD INFRASTRUCTURE
  • 15. NUCLEAR SAFETY INFRASTRUCTURE • 1968 Radioactive Substances Act • 1984 Atomic Energy Licensing Act • 20_ _ New Atomic Energy Licensing Bill (under purview of Ministry of Science, Technology and Innovation, MOSTI)
  • 16. ENFORCEMENT CONTROLS Radioactive Material Nuclear Material Irradiating Apparatus Prescribed Substance Regulatory Body Atomic Energy Licensing Board & Department of AELB MALAYSIAN LEGAL INFRASTRUCTURE Licensing Authority for Medical Purposes Director General of Health Atomic Energy Licensing Act 1984 (Act 304)
  • 17. LEGAL INFRASTRUCTURE Act 304 Regulations License Conditions To provide for the regulation and control of atomic energy; For matters connected therewith or related thereto •Licensing Regulations •BSS Regulations •Transport Regulations •Appeal Regulations, etc. Section 17, Act 304
  • 18. INTERNATIONAL MEMBERSHIP • Association of Southeast Asian Nation (ASEAN) Membership since 1967 • International Atomic Energy Agency (IAEA) Membership since 1969 • Regional Cooperative Agreement (RCA), signed 1975 • International Project on Innovative Nuclear Reactors and Fuel Cycles (INPRO) Membership since 2012 • Forum for Nuclear Cooperation in Asia (FNCA) 20??
  • 19. INTERNATIONAL INSTRUMENTS RELATED TO 3S SIGNED BY MALAYSIA • Non-Proliferation Treaty - 1968 • Safeguards Agreement -1972 • 1986 IAEA Convention on Early Notification of a Nuclear Accident - 1987 • 1986 IAEA Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency - 1987 • South East Asia Nuclear Weapon Free Zone (SEANWFZ), signed -1995 & Ratified - 1996 • Comprehensive Nuclear Test – Ban Treaty (CTBT), signed -1998 & ratified - 2008 • Additional Protocol - 2005
  • 20. NUCLEAR SECURITY • As a signatory to NPT & a member state of the IAEA, Malaysia reaffirms its commitment to non-proliferation as well as to implementation of its obligations under the NPT Safeguards Agreement. • Malaysia support robust practices on Nuclear security including export control system. • Dec 2012, Malaysia/AELB was officially recognized by IAEA as a Security Support Centre.
  • 21. Some Initiatives in the Implementation of 3S • Global Threat Reduction Initiative, GTRI (US) • RN42 (CTBTO)
  • 22. GTRI, Nuclear Malaysia Equipments installed: • High security lock • Motion sensor • CCTV dome • Electric lock • Security grating • Exit button • Glass break sensor • Siren and strobe • Radiation detector 22
  • 23. Sinagama Alarm Keypad High Security Lock Special Film Window Motion Sensor Glass Break Sensor
  • 26. CCTV, Security Grating Underground fibre optic ground sensor
  • 27. 4 set of gamma and neutron detectors 27
  • 28. 28
  • 29. Radionuclide Monitoring Station, RN 42 (CTBTO) Tanah Rata, Cameron Highland
  • 30.
  • 31. Compressed Filter AIR 2 IDC Compressed Filter Filter 1 Masuk DECAYMBER 24 hrs 3 VSAT ANTENNA Out 24 hrs AIR SAMPLER GAMMA 24 hrs DETECTOR COMPUTER & ELECTRONICS
  • 32. LOCAL COLLABORATION TO ENHANCE NUCLEAR SAFETY AND TECHNOLOGY Multilateral Cooperation Regional Cooperation R&D Institutions Universities Private Sector (Industries) Bilateral Cooperation Government Agencies Ministries NGO: MARS, MNS MARPA, NDT Soc
  • 33. INT. COLLABORATION TO ENHANCE NUCLEAR SAFETY AND TECHNOLOGY CTBT Non Proliferation Treaty (since1968) IAEA – Contract Research Projects (12) Forum for Nuclear Cooperation Agreement (FNCA) (7) IAEATechnical Cooperatio n Projects (6) IAEARegional Cooperation Agreements (9) Others (such as EU, ASEANTOM) International Project Innovative Nuclear Reactors & Fuel Cycles (INPRO) (1)
  • 35. Malaysia Energy Mix Fuel Sources % (components of the mix) Gas 50% Coal 40% Hydro 8% Renewal Sources (e.g. Biomass, Solar etc) 2% Nuclear none
  • 36. 7 Jan. 2011: Incorporation of MNPC as NEPIO 10 Dec. 2010: Decision to establish NEPIO 25 Oct. 2010: Economic Transformation Program (ETP) launched with nuclear power deployment included 16 July 2010: Cabinet Decision take cognisance National Nuclear Policy 10 June 2010: New National Energy Policy incorporated in Tenth Malaysia Plan with nuclear energy as longer term option for the Peninsula. 26 June 2009: Nuclear energy adopted as one of fuel options for electricity supply post-2020, especially for the Peninsula; 10 Sept. 2008: Decision to draft National Nuclear Policy 29 Aug. 2008: 2009 Budget in Parliament to explore nuclear energy & formulate new National Energy Policy
  • 37. DETAILED TIMELINE ON NUCLEAR POWER DEPLOYMENT Project Development Start Feasibility Study (FS) & Bid Specifications including basic & detailed design & site investigation Finish Pre-FS (PFS) YR1 Complete Regulations Desk-top Site Survey & Ranking Govt. Policy Decision on Nuclear Project & Plant Type Financial Planning & Closure Bid Specifications & Issue Request for Proposals (RFP) Finish Detailed Plan First Concrete Pouring Contract Award NPP Vendor Procurement of Components Bid Evaluation YR2 40-month Construction Period Initial Power Supply Start Site Excavation Finish FS Set Reactor Pressure Vessel Site Grading YR3 Detailed Site Investigations, EIA/RIA/SIA with input from NPP vendor on plant design Final Site Selection Sign/Accede/Ratify International Instruments & National Legislative Development YR4 YR6 YR5 Preliminary Safety Analysis Report (PSAR) for Site Permit Nuclear Fuel Loading YR7 YR8 YR9 Cold Hydrostatic test YR10 Commissioning 8-month YR11 YR12 Pre-Operational Baseline Radiological Data Gathering Site Permit Final Safety Analysis Report (FSAR) for Operating Licence Construction Permit Programme & Legislative Development Operator Training Operating Licence Point of No Return Infrastructure Assessment & Planning & Project Management, Bid Evaluation & Safety Assessment Training Continuous Stakeholder Involvement, Public Information Programme & Long-Term Supporting Human Capital & Industrial Development & Technology Acquisition Regulatory & Quality Assurance Training & Implementation & Technological Support Organisation (TSO) Development Source: Nuclear Malaysia; Malaysia NKEA OGE Laboratory 37
  • 38. Nuclear Power in Malaysia • • • • Government policy Human Capital Industry’s capability/capacity Public Acceptance
  • 39. An update on National Energy Policy • Currently under development by Economic Planning Unit (EPU), under the Prime Minister Department • The report expected to be available early 2014 • National new energy policy timeframe is until 2050 – Nuclear is considered as one of the options for electricity generation – but STILL NO CLEAR DECISION
  • 41. FRAMEWORK FOR NUCLEAR HRD PROGRAM FOR MALAYSIA Government Nuclear R&D Institutes • Nuclear Policy and Promotion • Planning of Nuclear Power • Nuclear Regulation and Control • Development, Acquisition, Dissemination of Nuclear Power Technology • Nuclear Manpower Training • Licensing and Inspection • Evaluation and analysis of Nuclear Safety Nuclear HRD Program Education Institutions • • • • Regulatory Authority Industries (All must work in tandem) Education in Nuclear Eng Education in Nuclear S&T B.Sc, MSc PhD Degree Vocational Education Level Utilities/Operator • Operation & Maintenance of NPP • In-house Training for NPP Personnel • Construction, design & A/E • Manufacturing of component and Equipment Society & Associations • Malaysian Nuclear Society • MSNT, MARPA • MARS 41
  • 42. Age Schooling Years 26 21 25 20 24+ 19 24 18 23 17 22 16 21 15 20 14 19 13 18 MALAYSIA EDUCATIONAL PATHWAYS 12 17 11 16 10 World of Employment/ Entrepreneurship Postgraduates Degree Universities & Higher Education University Institutions Colleges Polytechnic/ College Community Diploma Vocational Qualifications Certificate Sixth Form – Higher School Certificate Matriculation POLYTECHNICS Community Colleges Skills Certificate School Certificate (11 years of education) Secondary Academic Schools Technical Schools Lower Secondary (3 years) Primary (6 years) Source: MOHE Technical & Vocational Institutions Vocational Schools Skills Training Center Ages 13 to 15 42 Ages 7 to 12 42
  • 43. LIST OF UNIVERSITIES WITH NUCLEAR RELATED EDUCATION INSANIAH University College Universiti Malaysia Perlis Universiti Malaysia Kelantan Universiti Utara Malaysia AIMST University Universiti Sains Malaysia Universiti Darul Iman Malaysia Universiti Terbuka Wawasan Universiti Malaysia Terengganu Universiti Teknologi PETRONAS Universiti Pendidikan Sultan Idris UniversitiTenagaNasional (UNITEN) Elective subject-Nuclear Technology Universiti Malaysia Pahang UniversitiKebangsaan Malaysia Bachelor Programme: Nuclear Science Elective subject: Nuclear Law Universiti Sains Islam Malaysia INTI International University College Nilai International University College Univerisiti Teknikal Malaysia Melaka Master Programme-Nuclear Engineering UniversitiTunHussienOnn Malaysia Bachelor Programme-Nuclear Engineering UniversitiTeknologi Malaysia
  • 44. HIGHER EDUCATION INSTITUTIONS Source: MOHE Higher Education Institutions In Malaysia (May 2011) Types of Institution Total Public Universities 20 Polytechnics 27 Community Colleges 70 Private Universities/University Colleges 52 Private Colleges 403 Total 572 Level of study 2008 2009 2010 2015 (projection) PhD 12,240 14,600 17,700 21,500 M.Sc 36,000 45,000 49,500 60,400 B.Sc 270,000 272,000 275,000 334,000 Total 318,240 331,600 341,700 415,900 44
  • 45. Moving Forward: NUCLEAR CONSORTIUM IN EDUCATION, RESEARCH AND TRAINING • To facilitate the development of nuclear related education, research and training program in Malaysia • Establish collaboration platform between Malaysian Nuclear Agency and local educational institutes • Sharing of resources and expertise • Sharing of facilities from Malaysian Nuclear Agency and local educational institutes
  • 46. KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT Possible / Current Approaches Challenges National level ▪ ▪ ▪ ▪ • • Transformation of existing education policy Employment prospect (job scheme, incentive, etc) Amendment of foreign workers policy Attracting and retaining foreign and local talent Inadequate nuclear education programs (coordination, programs, etc). Limited funding and quota for training ▪ ▪ ▪ ▪ ▪ ▪ ▪ Technical Support Organisation ▪ ▪ ▪ ▪ ▪ ▪ Improving Human Resource Management (HRM) and support system Inadequate personnel Conflict of interest (R&D vs. TSO) Clarification of roles of TSO in NPP Improving Employment system Funding & Coordination (cross ministry) Limited funding, quota and time for trainings ▪ ▪ ▪ ▪ ▪ Establish Multi-lateral and bi-lateral cooperation Attract expatriate personnel who have work in nuclear sector abroad Engage experienced consultants Formulation of National Nuclear Policy and National Energy Policy Develop and improve HRD infrastructure e.g. National Nuclear Training Centre Establish National HRD Roadmap Fast-tracking nuclear related education for TSO personnel Deployment plan for TSO personnel Aptitude and attitude test Continuous capacity building program Examples: Nuclear Malaysia, Universities, Industries 46
  • 47. KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT Operating Organisation Challenges ▪ ▪ ▪ ▪ Willingness of vendors to offer HRD package solely Personnel’s keenness to convert into NP personnel Transformation of remuneration package Inadequate competent and experienced personnel Possible / Current Approaches ▪ ▪ ▪ ▪ ▪ ▪ Regulatory Body ▪ ▪ ▪ ▪ ▪ Amendment of existing nuclear act Inadequate number and experienced personnel Remuneration scheme Nuclear law education Limited quota for training • • ▪ • Collaboration with vendors in HRD Convert conventional power plant engineers to be competent in NP O&M, commissioning, etc. Recruitment of experienced oil and gas personnel under deployment plan between companies Offer higher incentives and remuneration Licensed and certified NPP personnel by 2021 Aptitude and attitude test Continuous capacity building in nuclear legislation Engagement of external assessors and transfer of expertise to local regulators Aptitude and attitude test Examples: AELB, Energy Commission 47
  • 48. KEY HR CHALLENGES IN NUCLEAR POWER DEPLOYMENT Challenges Possible / Current Approaches Education Institute ▪ ▪ ▪ ▪ ▪ ▪ • Industry ▪ ▪ ▪ ▪ No nuclear power related education program in higher learning institutions Lack of competent and experienced lecturers in nuclear education Future prospect for nuclear educated students are still not clear Lack of promotion for nuclear education Inadequate nuclear research and experimental facilities Need to produce nuclear craftsmen and technician Uncertain roles and participation of industry in NPP Inadequate integration between national and education institutes Coordination between industries Deployment of competent industry’s workforce into nuclear power program Nuclear safety culture ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Introduce nuclear engineering courses as elective in engineering courses at undergraduate level (for familiarization to engineering students) Introduce nuclear engineering courses at Master level (to produce nuclear engineer) Establish consortium of universities Establish network with international renowned universities and research institutions Joint education programs with other organizations (JICA, JAEA, KAIST, KINS, etc) Fellowship, training course and internship Formal courses of overseas study Non-power nuclear application industry is quite establish Attract industry key players to participate in NPP Capacity building Possible deployment of key personnel in industry to participate in NPP 48
  • 49. NUCLEAR SUPPLY CHAIN – POTENTIAL AREAS
  • 50. NUCLEAR SUPPLY CHAIN IN CONSIDERATION 1)The choice of reactor design & type eg Pressurized Water Reactor - PWR, VVER, AP1000 , EPR etc Boiling Water Reactor – BWR, ABWR etc 2) Consortium structures established Reactor Vendors ( Westinghouse, AREVA, KEPCO, Toshiba etc ) & their chosen/selected nuclear suppliers ( local and/or international companies ) to support the construction of the nuclear power reactor and plant.
  • 51. NUCLEAR SUPPLY CHAIN IN CONSIDERATION 3 a) Availability and/or lead times of critical components and services eg Reactor Pressure Vessel (RPV) , Steam Generators, pipework and valves, and main Engineering, Procurement and Construction (EPC) contractor , plant management capacities, etc - which could lead to delays in a national nuclear new build, and/or to cost escalation. b) It would be strategic and imperative to review and identify/determine what would the countries and companies need to develop or produce components , which currently (or in future) cannot be obtained from overseas suppliers without long delays, which could ultimately threaten both the: • security and • affordability of energy supplies
  • 52. NUCLEAR SUPPLY CHAIN IN CONSIDERATION 4. Many capable companies exist in Malaysian industry but they lack nuclear experience, where specifications are often different from usual industry standards Thus local companies must be introduced to and updated regarding Codes ,Standards and Accreditation by International Organizations including the ASME, USA etc a) In striving to enter the nuclear industry sector b) to ensure public safety c) facilitation of international business acceptance and d) enhance export opportunities 5. WNA – Economy of scale in supply chain and transfer technology, a minimum number of new builds should not be less than 10 power plants.
  • 53. ROLE OF NUCLEAR MALAYSIA AS A NUCLEAR POWER R&D and TECHNICAL SUPPORT ORGANISATION (TSO) ROLE OF NUCLEAR MALAYSIA AS A NUCLEAR POWER R & D and TECHNICAL SUPPORT ORGANISATION (TSO) NEPIO (MNPC) NPP Owner SPV Planning & implementation coordination NPP Operator SPV Technical support TSO (Nuclear Malaysia) Regulate National Regulators (AELB, ST, DOSH, DOE, MHLG) Malaysian Industries Malaysian Educational & Training Institutions supply NPP Vendor Single Turnkey Contractor Vendor Country TSO Vendor Country Regulators Vendor Country Industries Vendor Country Educational &Training Institutions 53
  • 55. • The decision by government to explore nuclear option for electricity generation attract mixed reaction from the public – pro and against; • It is becoming increasingly challenging in Malaysia to implement technologies because of the widespread public opposition, influential non-government organizations (NGOs) and also strong sentiment from minority groups; • Public records and news sources covering the reactions of these groups towards various beneficial projects requires more sophisticated PI/PA strategies to be employed
  • 56. Asian Rare Earth (ARE) Processing Plant
  • 57. Plant Broga Incinerator Project 300 MW Eastern Sabah Coal http://www.freemalaysiatoday.com/category/nation/2013/06/08/oil-and-gasrich-sabah-looking-at-coal-again/
  • 59. Lynas Advanced Material Plant (LAMP)
  • 60. Lynas Advanced Material Plant (LAMP) “For Malaysia and the world’s most advanced technology companies, the plant is a gamble that the processing can be done safely enough to make the local environmental risks worth the promised global rewards.”- The New York Times
  • 61. Biggest Challenge of Public Acceptance at National & Local Levels in Malaysia PUBLIC INFORMATION & ACCEPTANCE TARGETS: 70% public acceptance by end 2012 NATIONAL PUBLIC OPINION Why nuclear? Why not solar? Is it safe? What about the waste? Isn’t it too expensive? Where to get the fuel? Nuclear accidents? Public radiation exposure? Environmental impacts? Yes, but not in my backyard! STATE GOVERNMENTS Why build in this State? Won’t we lose the next election? Is it safe? What benefit to the State? MUNICIPAL AUTHORITIES Why build in this district? Is it safe for the people? LOCAL POPULATION NIMBY BANANA!* , GENERAL CIVIL SOCIETY & PUBLIC STAKEHOLDERS civic society, mass media, non-governmental organisations (NGO’s), religious, women & other civic organisations, teacher training colleges, university & school students, general public. STATE & LOCAL STAKEHOLDERS AROUND NUCLEAR PLANT SITES local government, community leaders, village heads, local associations, such as farmers & fishermen associations, schools, etc. *NIMBY *BANANA = Not in My Backyard = Build Absolutely Nothing Anywhere Near Anything Why build here? Is it safe for us? Accident effect? Won’t our food, fish, vegetable supply be contaminated? Our children? Our river, our beach?
  • 62. Public Opinion Survey Pre-Fukushima The use of nuclear energy as one of the ways to provide electricity in Malaysia. Opinion on the role of nuclear energy in Malaysia No answer/ respond 4.1 very important 11.2 Don't Know Somewhat important 52 32.7 Somewhat Oppose not too important Strongly Oppose not an important at all Somewhat Favor 52.0 % think that the role of nuclear energy in Malaysia is very important. Strongly Favor 0 10 20 30 40 50 79.6 % favor of the use of nuclear energy to provide electricity (42.9 % strongly favor and 36.7% somewhat favor). Post-Fukushima Survey in 2012 (MSc Student) • 47.1% Support NPP • 29% Disagree • 16.5% Malaysia Not ready • 7.4% Neutral
  • 63. Strategy: PUBLIC ENGAGEMENT GOALS OVER 10 – 15 YEARS Public Participation; Define overall approach and strategy/policies. Obtain local support at recommended site(s). Educate broader Malaysian population on nuclear power deployment in Malaysia’s energy mix. Develop Malaysian public participation infrastructure. ~ 10 – 15 years 63
  • 64. 1. The current nuclear industry in Malaysia is concentrated in non-power applications 2. The nuclear industry has progressed in Malaysia and positively contributed to socio-economic development of the country 3. Realization of nuclear power program in the future will offer significant prospect for Malaysian industry as well as access to advanced technology and business opportunities 4. Continuous improvement in terms of infrastructure, resources and capability is continent to uplift local nuclear industry