Kuala lumpur: Malaysia needs to strengthen its fuel security amid rising geopolitical tensions, with a greater focus on managing strategic petroleum reserves and diversifying energy import sources.
According to BERNAMA News Agency, Universiti Malaya associate professor Dr Khoo Ying Hooi from the Faculty of Arts and Social Sciences emphasized that these measures should be part of a broader strategy to ensure fuel supply stability and shield the public from rising oil prices driven by geopolitical tensions in West Asia. Dr Khoo recommends accelerating the shift towards alternative energy to reduce dependence on global oil in the medium and long term. She stressed the importance of sound stock management, diversified sources, and energy transition as keys to maintaining a stable fuel supply.
On measures to ease the cost of living, Khoo highlighted the practicality of targeted subsidies and cash assistance, supported by temporary price controls to curb sudden increases. She noted that while these subsidies provide immediate relief, they are unsustainable in the long term as they increase the government's fiscal burden. As such, these measures should be considered short-term responses, with a need to reassess current approaches, including reliance on subsidies, and to pursue structural reforms such as strengthening social protection systems.
Khoo also warned that failed negotiations between Iran and the United States could lead to prolonged tensions and a higher risk of escalation. She observed a shift from negotiations to strategic and military pressure, including sanctions and retaliatory threats, which could destabilize the global situation. She outlined several possible scenarios, including conflict escalation, disruptions to shipping, and prolonged tensions in the Strait of Hormuz, all of which could heighten global economic pressure due to rising oil prices and supply chain disruptions.
Iran and the United States began talks in Islamabad last Saturday after US President Donald Trump announced a two-week ceasefire agreement with Tehran. However, on Sunday, US delegation head Vice President J. D. Vance confirmed that both sides failed to reach an agreement, returning without a deal. In response, Trump announced sanctions on vessels entering or leaving the Strait of Hormuz and ordered the US Navy to track and intercept ships paying Iran for passage.
Geostrategist and senior fellow at the Nusantara Strategic Research Academy, Prof Dr Azmi Hassan, stated that Malaysia is well-positioned with an efficient oil and gas supply chain managed by Petroliam Nasional Berhad (Petronas). Supported by strong diplomatic ties with Tehran, some Malaysian oil shipments continue to pass through the Strait of Hormuz despite regional tensions. This ensures continuity of the country's energy supply, with an efficient supply chain enabling oil supply to last until May if there are no disruptions. Azmi agreed with the need to reduce reliance on fossil fuels and accelerate the shift to renewable energy sources like hydro, solar, and wind to strengthen long-term energy security.
Meanwhile, Universiti Teknologi Mara (UiTM) senior lecturer Dr Suseela Devi Chandran highlighted the Malaysian government's active monitoring of developments and diplomatic engagement with Iran, though long-term strategic preparedness remains a challenge. Despite being a net exporter of oil and gas, Malaysia could still be affected by a global energy crisis, as about 50% of its domestic supply passes through the Strait of Hormuz. She praised Malaysia's neutral but principled foreign policy as a temporary cushion against the crisis. Short-term measures, including expanded fuel subsidies and supply diversification, are helping to manage the immediate impact of rising energy costs. Suseela Devi emphasized the importance of strengthening long-term strategies through regional cooperation and sustained efforts to enhance energy security.