US Secretary of State Marco Rubio signed a Memorandum of Understanding with Malaysia's Foreign Minister Mohamad Hasan on civil nuclear cooperation, the State Department said in a statement on Thursday.

"The signing of this... marks an important step toward establishing a robust civil nuclear partnership between the United States and Malaysia," the State Department said.

The 123 Agreement

According to the State Department, as part of this effort, the US and Malaysia have also begun discussions on a civil nuclear cooperation agreement, known as the 123 Agreement.

These talks support the Trump administration's order to "rapidly deploy advanced nuclear technologies to support national security objectives, including powering artificial intelligence (AI) computing infrastructure and national security installations," which the White House reported that US President Donald Trump signed in May. 

The goal is to promote international civil nuclear collaboration, strengthen US energy leadership, and foster long-term strategic energy partnerships with global allies. It also aims to uphold the highest standards in nuclear safety, security, and nonproliferation, the State Department clarified.

US Secretary of State Marco Rubio takes part in a media briefing during the 58th Association of Southeast Asian Nations (ASEAN) Foreign Ministers' meeting and related meetings at the Convention Centre in Kuala Lumpur, Malaysia on July 10, 2025.
US Secretary of State Marco Rubio takes part in a media briefing during the 58th Association of Southeast Asian Nations (ASEAN) Foreign Ministers' meeting and related meetings at the Convention Centre in Kuala Lumpur, Malaysia on July 10, 2025. (credit: MANDEL NGAN/POOL VIA REUTERS)

"123 Agreements facilitate nuclear cooperation agreements for significant transfers of nuclear material, equipment, or components," according to the US Department of Energy.

The State Department concluded that these agreements also help the US compete more effectively in the global civil nuclear market and create additional opportunities to sell nuclear technology internationally.

Last US nuclear cooperation agreement 

The US has not agreed to a civil nuclear agreement with Saudi Arabia or any other Muslim country.

However, in 2008, the US Congress approved an agreement that allowed nuclear cooperation between the US and India, according to the Council on Foreign Relations.

The Civil Nuclear Cooperation Initiative was first introduced in the joint statement released by President George W. Bush and Indian Prime Minister Manmohan Singh in 2005, "as part of the new commitment to a comprehensive bilateral relationship," according to the State Department.

As part of the initiative, India agreed to strengthen international safeguards and follow global rules for exporting nuclear and missile technology. They also promised not to test nuclear weapons and to make sure nuclear trade is only used for peaceful purposes, the State Department added.

The agreement aimed to promote partnerships between US and Indian companies, help develop India's civil nuclear industry, provide a clean energy source for India’s economy, and improve the country’s energy security.

The Council on Foreign Relations noted that critics at the time argued the deal reversed decades of US nonproliferation policy, which helps prevent the spread of nuclear weapons and technology, according to the State Department.

They also warned it could undermine efforts to stop countries like Iran and North Korea from obtaining nuclear weapons, potentially escalating a nuclear arms race in Asia, as stated by the Council on Foreign Relations.