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MALAYSIANS have been urged to remain calm and avoid panic buying despite rising global oil prices and economic uncertainty linked to geopolitical tensions in the Middle East, said an economist.
Dr Barjoyai Bardai of Malaysia University of Science and Technology said the country’s economic fundamentals remain strong, with a sufficient supply of essential goods, particularly fuel.
He stressed that there are no restrictions on key commodities, dismissing fears that could trigger unnecessary stockpiling.
“There is no need for panic buying or hoarding,” he said, adding that individuals who wish to take precautionary steps would be better off safeguarding their finances rather than stockpiling goods.
He suggested keeping cash reserves or placing savings in instruments such as the Employees Provident Fund’s Account 3, rather than accumulating items like fuel or rice.
Barjoyai also reassured the public not to be overly influenced by developments in neighbouring countries, emphasising that Malaysia’s open and resilient economy is well-positioned to withstand external shocks.
On the issue of fuel subsidy rationalisation, he addressed the government’s decision to reduce the subsidised fuel limit from 300 litres to 200 litres per month.
He highlighted the significant fiscal burden of subsidies, noting that the government currently spends approximately RM3.2 billion monthly on fuel subsidies.
According to him, such expenditure could otherwise be channelled into long-term development projects, including schools and public transport infrastructure like MRT stations.
He added that the monthly subsidy amount, if redistributed, would be equivalent to roughly RM100 per citizen, suggesting that targeted assistance for lower-income households would be more effective.
“It would be better for that allocation to go directly to families in need, allowing them to decide whether to spend on fuel or other essential items,” he said.
Barjoyai further pointed out that the annual cost of fuel subsidies amounts to around RM40 billion, a substantial portion of the government’s overall subsidy allocation, which stands at RM49 billion for 2026.
He proposed the establishment of an endowment fund as a more sustainable, long-term solution to support vulnerable groups.
Such a fund, he said, could be financed through contributions from corporations, the public, and the government, providing a more structured and enduring form of assistance. – March 28, 2026
