Kuala lumpur: Rising petroleum import prices and disruptions to global logistics caused by the Middle East conflict, which threaten inflation rates and the country's long-term fiscal stability, serve as a warning for Malaysia to strengthen energy sovereignty by diversifying local energy sources. Universiti Malaysia Terengganu (UMT) vice-chancellor Prof Dr Mohd Zamri Ibrahim said diversifying local energy sources would also reduce the country's dependence on volatile fossil fuel markets.
According to BERNAMA News Agency, Mohd Zamri stated that by integrating green hydrogen, offshore wind, and electric vehicle (EV) infrastructure, Malaysia is pioneering a blue economy that acts as a shield for national energy self-sufficiency. He emphasized that the current crisis in the Middle East is not just a political issue but also a technical warning for Malaysia.
Mohd Zamri highlighted that green hydrogen is no longer a 'technology of the future' but a present national security necessity. By leveraging maritime expertise and the wind potential along Malaysia's coasts, the country can turn geopolitical risks into an opportunity to lead the Blue Economy in the region.
He further explained that green hydrogen acts as a high-energy-density carrier, providing a stable supply to the national grid, with a specific energy density of about 120 megajoules per kilogram (MJ/kg), roughly three times higher than diesel. This makes it the only viable zero-emission alternative for heavy applications such as maritime vessels and public transport.
Mohd Zamri pointed to China's accelerated development of its 'Green Hydrogen Valley', an industrial cluster producing hydrogen onsite using dedicated renewable energy, reducing its oil import dependence by 70 per cent. He suggested similar initiatives for Malaysia, where green hydrogen can be produced at sea by colocating proton exchange membrane (PEM) electrolysers with offshore wind farms off the coasts of Kudat, Sabah, and the East Coast of Peninsular Malaysia.
This approach would eliminate the need for costly onshore grid connections and allow hydrogen to be transported by specialised tanker ships or subsea pipelines. On global oil prices, Mohd Zamri noted that although Malaysia might see short-term gains when oil prices spike, it presents a 'double-edged sword' as increases in the cost of refined petroleum imports and disruptions to global logistics threaten domestic inflation rates and the country's long-term fiscal stability.
As of March 2026, he added that the escalation of open conflict between the United States and Iran has significantly impacted the global economy. Instability in the Strait of Hormuz, a key route for nearly 20 per cent of the world's oil and liquefied natural gas (LNG) supplies, serves as a warning for Malaysia.