Federal gov’t moves to secure Malaysia’s oil supply amid West Asia tensions

File photo for illustration purposes only. Image by Engin Akyurt from Pixabay.

By DayakDaily Team

KUCHING, March 13: The federal government is working to strengthen Malaysia’s oil supply security and ensure that domestic supply remains stable following the conflict in West Asia, said Second Finance Minister Datuk Seri Amir Hamzah Azizan.

In a Bernama news, he urged the public to refrain from speculating about oil supplies, warning that such speculation could have negative consequences, particularly as geopolitical tensions in the region continue to escalate.

“What is important is that we focus on what is within our control, which is ensuring that domestic supply remains sufficient,” he told reporters after a press conference following a Special Cabinet Meeting in Kuala Lumpur today.

Amir Hamzah said that, as previously announced by Prime Minister Datuk Seri Anwar Ibrahim, Malaysia currently has adequate oil supply until May. Nevertheless, the government is continuing efforts to secure additional supplies to replace ongoing consumption.

“Efforts to obtain new supplies are ongoing by Petroliam Nasional Bhd (PETRONAS) and other oil companies,” he said.

He added that the government is closely monitoring the situation and stands ready to implement the necessary interventions.

“In terms of the government’s response, we are assisting through targeted interventions. At present, we are absorbing a slightly higher subsidy bill, and the situation remains manageable,” he said.

Amir Hamzah also noted that the duration of the conflict in West Asia remains uncertain, prompting the government to adopt short-, medium-, and long-term planning measures.

At the same time, he emphasised that Malaysia’s economic stability provides an opportunity for the country to continue driving economic growth.

“If the economy here remains strong, it gives Malaysia the opportunity to be more stable compared to other places,” he said.

The Special Cabinet Meeting was convened to review the country’s fiscal position and closely monitor developments in Iran following the conflict in West Asia.

The crisis began on Feb 28 when the United States and Israel launched attacks on Iran, prompting Tehran to retaliate by targeting US interests in the region.

Iran has also required oil tankers passing through the Strait of Hormuz, one of the world’s most critical energy routes, to obtain prior approval, and has pledged not to allow tankers from the United States and its allies to pass through the strait.