Singapore Eyes Nuclear Power as Iran War Exposes Its Import Problem

Singapore faces a pressing energy challenge after recent disruptions tied to the war in Iran drove oil and gas prices sharply higher. The city-state imports nearly all of its fossil fuels and currently relies on oil and gas for about 65% of its energy needs. When the Strait of Hormuz—a chokepoint that handles roughly one-fifth of global oil and gas trade—was closed, Asian markets that receive about 85% of those flows, including Singapore, found their supplies at risk.

Land scarcity adds a distinct constraint to Singapore’s options. As one of the world’s most densely populated countries, the island has limited areas available for large-scale renewable installations such as utility wind or solar farms, which typically require extensive land. That combination of high energy demand per area and scarce buildable land is driving policymakers to consider the most energy-dense generation technologies.

Officials in Singapore have been widening their review of possible energy pathways. The government has increased imports of cleaner electricity from neighbors including Laos and Malaysia, but local experts and ministers warn that imports alone cannot deliver energy security. Prime Minister Lawrence Wong has said the country needs a more deliberate, diversified and forward-looking energy strategy.

Nuclear energy is now among the options under active study. Singapore is examining both conventional nuclear fission and the longer-term prospect of fusion. The International Atomic Energy Agency will conduct an assessment next year to determine whether Singapore is ready to make an informed decision about producing nuclear energy. Government statements emphasize capability building and keeping decisions open rather than committing to deployment immediately.

Singapore is also positioning itself in the emerging fusion supply chain even if it is not planning to build a commercial fusion reactor in the near term. Trade and Industry Minister Tan See Leng highlighted national strengths—such as precision engineering, advanced manufacturing and plasma diagnostics—that could support a role in fusion-related industries. Officials characterize fusion as a nascent pathway they are following closely while continuing to evaluate a mix of technologies for the country’s energy transition.