Malaysia well-positioned to weather Middle East conflict, says Amir Hamzah

KUALA LUMPUR (March 9): Malaysia is well-positioned to manage potential economic fallout from escalating conflict in the Middle East, backed by its status as a net energy exporter and strong economic fundamentals, Finance Minister II Datuk Seri Amir Hamzah Azizan said.

He said the country’s position as a net energy exporter provides a buffer against volatility in global oil markets, even as geopolitical developments could push crude prices higher.

“Fundamentally, it is important to recognise that Malaysia is a net energy exporter. In that sense, we have some positive benefits that are going to come out from this,” he said after the launch of the Capital Market Master Plan 2026-2030 (CMP) here, today.

The CMP was launched by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim.

However, Amir Hamzah noted that the government remains mindful of the domestic implications of rising energy prices, particularly for Malaysians’ cost of living.

He said the government has been managing the potential impact through targeted subsidy measures implemented over the past two years, allowing part of the cost increases to be gradually absorbed by the system while safeguarding fiscal sustainability.

“Over the last two years, we have spent a lot of time doing subsidisation. On the back of that, we have managed to do some pass-through of the costs to the system, which allows us to better manage the impact on the government’s fiscal position.

“At the same time, the government’s immediate priority is to ensure stability in the country’s fuel supply, particularly for gas and petrol,” he said.

Amir Hamzah noted that Malaysia continues to enjoy a stable gas supply, given its position as both a producer and an exporter, with sufficient capacity to support domestic consumption through pipeline networks that supply utilities and industrial users.

He added that petrol supply in the country also remains adequate, with stock levels currently at comfortable levels.

“In this instance, because Malaysia is a net exporter and also a net producer, we have a very good, stable supply in the country for gas, both for utilities and industrial customers.

“We also produce fuel in the country, so that gives us some flexibility to manage through,” he said.

As part of efforts to cushion consumers from volatility, the Prime Minister has pledged to maintain the price of subsidised petrol for the next two months.

Amir Hamzah said this move is aimed at shielding the public from sudden price shocks while the government monitors developments in the Middle East.

“Price will transmit through the system, but because we have the capacity to manage through, the impact on the people will be managed in this manner,” he said.

Amir Hamzah added that Malaysia’s economic resilience is further supported by strong growth momentum entering this year, with gross domestic product expanding 5.2 per cent last year. – Bernama