KUALA LUMPUR (March 3): Rising tensions in the Middle East could create uncertainty for Malaysia, particularly in fuel costs and overall energy security, Economy Minister Akmal Nasrullah Mohd Nasir said.
Higher oil prices may lift dividends from Petroliam Nasional Bhd, the national company better known as PETRONAS, and boost government revenue, but the gains would likely be offset by increased costs of imported refined petroleum products, he said on Tuesday at an energy industry forum.
Any supply disruption would raise prices and the cost of energy imports, Akmal Nasrullah warned in his plenary address at the Malaysian Petroleum Resources Corp’s OGSE 100 CEOs Forum 2026.
His speech also comes at a time of heightened concerns over the Strait of Hormuz, a major shipping route for about 20% of global oil supply, following the US-Israel attack on Iran that has already raised global prices.
While Malaysia is one of the very rare gas exporters in Asia, the country also imports liquefied natural gas from Australia and other countries. Any sharp rise in prices would increase industrial energy costs, power generation expenses and household fuel bills.
Akmal Nasrullah also highlighted the need for the country to diversify its energy sources, strengthen domestic generation capacity and accelerate renewable and transition technologies to manage such risks.
“These developments show that energy security is inseparable from economic resilience,” Akmal Nasrullah said. “It’s about preparing a system that can maintain reliable, affordable, and stable energy supplies even amid global volatility and high oil price scenarios.”