Kuala lumpur: Malaysia will continue to shift towards renewable energy while maintaining a stable power system base that will anchor the country's stability going forward, said Finance Minister II Datuk Seri Amir Hamzah Azizan. Speaking as a panellist at the IMF Spring Meetings session titled 'The Future of Economic Integration in a Fragmenting World', Amir Hamzah highlighted Malaysia's relative fortune in domestic energy resources, particularly natural gas.

According to BERNAMA News Agency, Amir Hamzah stated that Malaysia is self-reliant in terms of gas, ensuring stability of electricity supply. However, he noted the country's dependence on imported liquid fuels and the importance of managing this dependency. He emphasized the necessity for Malaysia to send the right market signals through subsidy reforms, pointing out that historical reliance on subsidies has led to fiscal deficits and strained government finances.

Amir Hamzah explained the need to reform subsidy structures to balance support fairly, particularly for key groups requiring assistance. He noted the importance of addressing inflation to provide effective support to lower-income populations. This approach, he argued, allows the market to better sort out supply and demand, enabling more effective implementation of efficiency measures.

Looking forward, Amir Hamzah reiterated Malaysia's commitment to achieving 'Net Zero by 2050' and accelerating the transition towards renewable energy, including integrating the national grid. He stressed the significance of regional cooperation through the Asian Power Grid, which he believes will enhance system stability and promote interdependence among regions. The IMF Spring Meetings session was broadcast live on the International Monetary Fund website.