KUALA LUMPUR (April 6): Malaysia’s energy exports, targeted subsidy framework and fiscal credibility have helped to cushion wild swings of oil prices, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

In a LinkedIn post, Amir Hamzah said the targeted subsidy mechanism, even after the government lowered the monthly subsidised fuel quotas, has kept pump prices stable and helps to contain inflation to stay moderate within 1.5% to 2.5%.

“So although we are overall an energy exporter, we still have import exposure when oil prices spike,” he said. “The difference between us and our neighbours is how we have been able to manage that exposure.”

Amir Hamzah was commenting on a Bloomberg report about the sharp inflow into Malaysian bonds at a time when other emerging markets were rattled by the conflict between US-backed Israel and Iran.

Thailand was forced to cut subsidies for diesel as the government grapples with high energy import costs as oil prices surged with the protracted war. The Philippines, meanwhile, declared a national energy emergency and Brunei imposed fuel control measures.

In addition to the stability in domestic fuel prices, Amir Hamzah said budget discipline has contributed to Malaysia’s appeal among global investors with continued deficit reduction and better revenue collection.

“Oil revenue helps, but we have also diversified our economy so we are not hostage to oil prices the way we used to be,” he stressed.

Malaysia still relies on petroleum receipts for a sizeable portion of government coffers, though the reliance has shrunk to less than 20% of total federal revenue in 2025 from over 30% a decade ago.

“Investors look at this and think: Malaysia has fiscal space to absorb shocks without panicking. Stable currency. Controlled inflation. Safe bonds. And so they buy,” he said. “In today’s world where ongoing geopolitical conflict means uncertainty is almost a permanent feature, steady and resilient is what we want to be known for.”

Brent, the global benchmark for crude oil, is off high at around US$110 per barrel after hitting a four-year high of near US$120 per barrel in March following the war’s outbreak. Year to date, Brent has jumped 80%.