Kuala lumpur: Malaysia's position as an oil-producing nation provides a significant advantage in safeguarding its citizens from the impact of increasing energy prices, according to the chairman of the Malaysian Investment Development Authority (MIDA), Tengku Datuk Seri Zafrul Abdul Aziz. The revenue generated from the oil sector plays a critical role in mitigating the effects of global oil price hikes on the country's populace.

According to BERNAMA News Agency, Tengku Zafrul highlighted that rising global oil prices contribute to an increase in national revenue from the oil industry. Petroliam Nasional Bhd (Petronas) has approved dividends amounting to approximately RM32 billion for the 2025 financial year, with an anticipated RM20 billion for 2026. This substantial income enables the government to implement measures that lessen the burden on Malaysians.

In his social media post on Tuesday, Tengku Zafrul noted that while global oil price increases lead to higher transportation and goods costs worldwide, Malaysia's status as an oil producer allows it to cushion these effects. In 2025, the country produced about 184 million barrels of crude oil and condensate, bolstering its financial strength in the energy sector.

The BUDI95 programme ensures that the RON95 petrol price for eligible citizens remains at RM1.99 per litre, despite higher unsubsidised costs. Targeted subsidies have also been introduced to ensure that assistance reaches those in need, minimizing financial leakages. These initiatives highlight Malaysia's unique position, as explained by Tengku Zafrul, in not only consuming oil but also producing it, thereby utilizing this capacity to protect its citizens from economic pressures associated with fluctuating global oil prices.