Economy Minister Akmal Nasrullah warns of persistently high oil prices due to global energy risks, urging national adaptation and accelerated renewable energy transition.
PETALING JAYA: Malaysia must brace for a “new normal” of persistently higher oil prices as global energy risks intensify, Economy Minister Akmal Nasrullah Mohd Nasir warned today.
While the government is moving to cushion the impact on households and safeguard economic resilience, Akmal stated that the country can no longer assume a return to pre-crisis fuel price levels.
He said that geopolitical tensions continue to weigh heavily on global energy markets, necessitating a balanced and proactive national response.
Speaking at a briefing on the global energy situation, the Minister stressed that the crisis extends beyond the pump, affecting the cost of living, supply chain stability, and broader economic security.
“The message is clear. We cannot be too comfortable, but neither should we be overly alarmed.
“We must adapt to a new normal where oil prices remain higher than before the crisis,” he said.
He further cautioned that the economic impact of the Middle East conflict often carries a “lag effect,” meaning the full consequences may not be immediate.
“Today we see cost pressures, but jobs and incomes may only be affected weeks or months later,” he said.
Early signs of disruption are already visible in the aviation and tourism sectors. Between 23 March and 28 March, 55 weekly flights involving six airlines were cancelled.
Arrivals from West Asia are projected to fall by 1.5 million this year.
While food supplies including rice, poultry and produce remain stable for now, pressure is building at the production level.
Diesel, fertiliser, and animal feed account for approximately 40% of agricultural costs and are expected to rise significantly.
“Fertiliser prices could increase by up to 20%, while feed costs may rise by about 8%, raising the risk of higher consumer prices,” Akmal said.
In response to these pressures, the government is enhancing targeted support measures.
Current energy stocks are expected to last only until the end of May, prompting a strengthening of supply planning.
Diesel assistance has been enhanced, including higher incentives for padi farmers and increased cash aid of RM400 per month for farmers, smallholders and eligible diesel vehicle owners.
Enforcement will also be stepped up to curb leakages, hoarding and smuggling.
Akmal added that Malaysia must accelerate its transition to renewable energy, as the current crisis could persist for up to 18 months.
“The government’s role is not only short-term stabilisation but long-term resilience,” he said.
