Kuala lumpur: The recent hike in coal prices to US$148 per tonne on September 10, 2026, is set to directly impact the cost of electricity generation, Economy Minister Akmal Nasrullah Mohd Nasir announced today. The minister noted that while there was a moderate increase in coal prices in August, rising to US$130.67 per tonne from US$129.63 per tonne in July, the peak daily electricity demand reached 21,949 megawatts on September 9, marking a 4.7 percent increase over the August average.
According to BERNAMA News Agency, Akmal Nasrullah stated that the increased demand remains within the reserve margin range that the existing electricity supply system can handle. He emphasized that the government remains committed to ensuring the generation capacity and electricity supply system are sufficient to support economic activities, meet the needs of the populace, and strengthen the resilience of the nation's energy system. This was conveyed during a briefing on the global energy crisis broadcasted on TV1 today.
Beyond coal, the minister highlighted increases in the prices of crude oil and liquefied natural gas. The average price of Brent crude oil for August rose 8.9 percent to US$90.88 per barrel from US$83.42 per barrel in July, with the daily price recently surpassing US$120 per barrel. Additionally, the average price of liquefied natural gas increased by 13.2 percent from US$19.32 per million British thermal units (MMBtu) in July to US$21.87 in August, nearing US$30 per MMBtu by mid-September.
Akmal Nasrullah warned that geopolitical tensions and disruptions in supply routes could still drive short-term price spikes, even as the global market adjusts. To address these challenges, he detailed the government's strategy to ensure fuel supply security through the end of 2026 by diversifying import sources, optimizing domestic fuel production, and strengthening long-term supply agreements.
He further explained that the strategy to diversify supply sources includes importing crude oil and petroleum products from various regions, such as the Americas, and exploring alternative sources from Africa. This approach aims to reduce reliance on any single country or supply route, especially given the uncertainties facing energy trade flows from West Asia.
Moreover, Malaysia and Thailand have enhanced their energy cooperation by signing a production sharing contract and gas sales agreement for Block A-18-01 in the Malaysia-Thailand Joint Development Area. This agreement is expected to foster investment, maintain production, and ensure long-term value for both nations.
Akmal Nasrullah noted that international markets have been adjusting since March 2026 through inventory management, supply source optimization, and trade route redirection to mitigate the impact of raw material and production input disruptions. He stressed that the government's priority is to ensure the domestic supply chain remains functional, basic necessities are sufficiently available, and global cost pressures do not unduly affect the well-being of the populace and economic continuity.
Additionally, the minister reported an increase in job losses to 68,177 workers from January to September 16, 2026, compared to the same period in 2025, affecting the manufacturing and wholesale and retail trade sectors. He mentioned that Socso has facilitated job relocation for 143,653 workers from January to September 11 through the Employment Insurance System and the MYFutureJobs portal.