Malaysia can handle rising energy prices, says Amir Hamzah

2026-03-09 - 06:14

Finance minister II Amir Hamzah Azizan said Malaysia’s domestic energy supply remains stable, with Petronas playing a key role in ensuring adequate gas and oil supply. KUALA LUMPUR: Malaysia is in a relatively stable position to manage rising global energy prices amid the Middle East conflict, says finance minister II Amir Hamzah Azizan. He said while the US-Iran geopolitical crisis had disrupted oil supply and pushed crude prices above US$115 per barrel, Malaysia remained relatively insulated because its oil and gas sector continued to perform well. “Whenever supply and demand are disrupted, there will be some impact on prices. But at the moment, if you look at Malaysia, we are in a reasonable position. “At the end of the day, we must remember that Malaysia is a net energy exporter, so higher oil prices also have a positive transmission to the economy,” he told reporters on the sidelines of the 2nd Asean Banking and Finance Summit today. Amir said Malaysia’s domestic energy supply also remained stable, with national oil company Petronas playing a key role in ensuring adequate gas and oil supply. He also said that there were currently no disruptions to the local energy market. When asked whether the Middle East conflict could eventually push up borrowing costs and inflation, Amir said the impact would depend on how long the crisis lasts. He said Malaysia entered the year from a position of strength following its strong economic performance last year. “And because of that, we expect a good first quarter. Hopefully, if cooler heads prevail and we reach a diplomatic solution, we should be able to manage this situation well,” he said. He also reiterated that the government would continue its efforts to maintain the subsidised RON95 petrol price at RM1.99 for the time being. ‘Banks must adapt’ Separately, Amir said banks must adapt to a new global environment shaped by geopolitical tensions and economic fragmentation. Speaking in his keynote address at the summit, he said the global financial system was entering a new “geo-economic era”, where financial institutions must evolve beyond efficiency and become more resilient to external shocks. “In this new world, banks are no longer neutral intermediaries. They either absorb shocks or they transmit them,” he said. He also highlighted the potential for Asean to strengthen regional financial integration through cross-border digital payments, digital trade finance and real-time financial settlement systems. Amir urged financial institutions to invest more heavily in talent development, particularly leaders capable of understanding both financial markets and geopolitics, saying such capabilities were becoming critical in navigating an increasingly complex global economy. He added that Malaysia would continue engaging with partners across both Western and Eastern economic blocs despite rising geopolitical fragmentation.