Malaysia PM Anwar Ibrahim says fuel supply remains secure despite global tensions, as Malaysia maintains stable energy and subsidies
PUTRAJAYA: Malaysia’s fuel and energy supply remains secure despite volatile global price movements and geopolitical tensions, Prime Minister Datuk Seri Anwar Ibrahim said today, stressing that the country’s supply fundamentals are stable even as costs fluctuate.
Anwar said Malaysia continues to benefit from strong production capacity and strategic international partnerships, even as conflicts in key shipping routes such as the Strait of Hormuz push up freight and insurance costs globally.
“Supply is there. We are fortunate that Malaysia is among Asean countries with secure oil and gas supply,” he said in his speech at the Natural Resources and Environmental Sustainability (NRES) Ministry’s monthly assembly today.
He said geopolitical tensions in the Middle East, particularly involving Iran and Israel, with support from the United States, have disrupted shipping routes and increased global transportation risks.
“Freight costs increase. Insurance costs increase. When it involves the safety of crew members and companies, prices rise significantly. And that cost is borne by us,” he said.
However, Anwar stressed that Malaysia’s challenge is not supply disruption, but price pressure driven by external factors.
“This is not a problem caused by us, but what is happening now must be controlled,” he said, adding that Malaysia continues to maintain its subsidised RON95 fuel (Budi95) pricing despite mounting fiscal pressure.
Anwar also defended the government’s targeted subsidy approach, saying assistance is being directed to those most affected, including fishermen, farmers and logistics operators, rather than a blanket subsidy system.
He added that Malaysia’s energy security is further supported by diplomatic ties with producing countries including Iran, Russia, Turkmenistan and Uzbekistan, ensuring continuity of supply routes.
Despite global uncertainty, Anwar said Malaysia remains resilient and continues to attract major investments in the energy and high-technology sectors, such as artificial intelligence and data centres.
“We still have areas where Malaysia has strong and unique advantages,” he said, citing recent investments by global firms including Intel and AWS.
“While there are pressures, we are still able to maintain supply security and attract new investments,” he added.
