The Present and Future Prospects of Malaysia’s Atomic Energy Licensing Act 1984 (Act 304) on Nuclear Liability

Initially, the Government of Malaysia (GOM) agreed to consider deploying nuclear energy as an alternative source of energy in Peninsular Malaysia and planned to build a 2 gigawatts nuclear power plant (NPP) to be operational post 2030. However, after the 2018 General Election (GE), the GOM decided that it will no longer proceed with its nuclear energy program. Despite the GOM’s decision, there is a necessity to further strengthen the Atomic Energy Licensing Act 1984 (Act 304) particularly regarding nuclear liability issues. Nuclear incidents are transboundary in nature, it can easily spread highly radioactive materials into the environment through water and air, and cause damage to neighboring States. Therefore, this paper aims to explore Act 304, its present and future prospects in dealing with nuclear liability issues. References shall be made to the principles of the global nuclear liability regimes (liability regime). This paper finds that the provisions of Act 304 are consistent with the principles of the liability regime such as the definition of important terms like “nuclear damage”, “nuclear incident” and “nuclear installation”; “strict and exclusive liability”; liability limited in amount and time; compulsory financial security; and exoneration. Nonetheless, there are also several shortfalls in Act 304. As for the future prospect, this paper hopes that Act 304 will be amended in accordance with the revised liability regimes which provide enhanced protection to the people, their property and environment. Furthermore, Malaysia should also consider adhering to the liability regime.