Finance Minister II Datuk Seri Amir Hamzah Azizan says Malaysia’s status as a net energy exporter provides a buffer against economic fallout from the Middle East conflict.
KUALA LUMPUR: Malaysia is well-positioned to manage potential economic fallout from escalating conflict in the Middle East, backed by its status as a net energy exporter and strong economic fundamentals, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
He stated that the country’s position as a net energy exporter provides a buffer against volatility in global oil markets, even as geopolitical developments could push crude prices higher.
“Fundamentally, it is important to recognise that Malaysia is a net energy exporter, and in that sense, we have some positive benefits that are going to come out from this,” he said after the launch of the Capital Market Master Plan 2026-2030.
Amir Hamzah noted, however, that the government remains mindful of the domestic implications of rising energy prices for Malaysians’ cost of living.
He explained that the government has been managing the potential impact through targeted subsidy measures implemented over the past two years, allowing part of the cost increases to be gradually absorbed while safeguarding fiscal sustainability.
“Over the last two years, we have spent a lot of time doing subsidisation, and on the back of that, we have managed to do some pass-through of the costs to the system, which allows us to better manage the impact on the government’s fiscal position,” he said.
The minister added that the government’s immediate priority is to ensure stability in the country’s fuel supply, particularly for gas and petrol.
He noted that Malaysia continues to enjoy a stable gas supply, given its position as both a producer and an exporter with sufficient capacity to support domestic consumption.
Amir Hamzah said petrol supply in the country also remains adequate, with stock levels currently at comfortable levels.
“In this instance, because Malaysia is a net exporter and also a net producer, we have a very good, stable supply in the country for gas, both for utilities and industrial customers,” he said.
As part of efforts to cushion consumers from volatility, the Prime Minister has pledged to maintain the price of subsidised petrol for the next two months.
Amir Hamzah said this move is aimed at shielding the public from sudden price shocks while the government monitors developments in the Middle East.
“Price will transmit through the system, but because we have the capacity to manage through, the impact on the people will be managed in this manner,” he said.
Amir Hamzah added that Malaysia’s economic resilience is further supported by strong growth momentum, with gross domestic product expanding 5.2% last year.
