Kuala lumpur: Global supply disruptions caused by geopolitical conflict in West Asia are a clear signal that Malaysia must reduce its reliance on fossil fuels and accelerate the transition to renewable energy, an economic expert has said.
According to BERNAMA News Agency, Distinguished Professor Datuk Dr Rajah Rasiah, the executive director of the Asia-Europe Institute at Universiti Malaya, noted that renewable sources currently account for only 20 per cent of the country's energy supply, with just two per cent from solar and wind, and 18 per cent from hydropower.
'Efforts to reduce dependence on fossil fuels in Malaysia are progressing too slowly. We need to shift towards renewable energy such as solar and wind, as seen in developed countries and Indonesia,' he said on Bernama TV's Apa Khabar Malaysia programme today.
He stressed that efforts to accelerate the green transition must be intensified in line with global commitments to cut carbon emissions and achieve carbon neutrality by 2050. Dr Rajah also did not rule out the possibility that ongoing geopolitical tensions in West Asia could trigger an 'energy emergency'.
He said the situation is becoming more apparent as crude oil prices have surged to around USD100 per barrel, up from about USD50 previously, increasing the government's subsidy burden. 'As a net oil importer, we face challenges when crude oil prices spike to USD100 per barrel. Malaysia consumes about 700,000 barrels of oil daily,' he said.
The professor said that the country's reliance on imported oil has reached about 50 per cent of domestic demand, forcing the government to bear high costs to maintain subsidised fuel prices, including RON95 at RM1.99 per litre. On the impact on lower-income groups, he said targeted subsidy mechanisms must be strengthened to ensure assistance reaches those who need it most.
'The issue now is that all Malaysians enjoy the same subsidised price at petrol stations regardless of income. This needs to be reconsidered. We must protect the poor, rather than provide blanket subsidies for all,' he added.