Kuala Lumpur: The ongoing geopolitical tensions in the Middle East are having a short-term impact on Malaysia, particularly in terms of economic stability, said Finance Minister II Datuk Seri Amir Hamzah Azizan. Amir Hamzah highlighted that the current crisis, marked by a series of retaliatory attacks in conflict zones, has caused crude oil prices to experience a sharp increase over a short period.

According to BERNAMA News Agency, Amir Hamzah stated that oil prices surged sharply due to these attacks but noted that prices have been declining again with ongoing negotiations. He emphasized that the impact is currently short-term and acknowledged efforts to maintain peace, with Malaysia supporting initiatives aimed at sustaining regional peace. These comments were made after he launched the Budget 2025 Initiative by SME Bank.

He further underscored that global peace remains a critical issue, aside from economic concerns. In recent developments, Brent crude oil prices rose by over three percent last week but stabilized following early reports of peace talks by several major powers.

Regarding RON95 fuel subsidies, Amir Hamzah mentioned the government’s intention to implement targeted RON95 subsidies this year. He stressed the importance of a proper mechanism, similar to the approach taken with diesel, and stated that discussions are ongoing with the Cabinet. He assured that the principle, as stated by Prime Minister Datuk Seri Anwar Ibrahim, is to avoid imposing a high burden, ensuring that the majority of people will not be adversely affected by the RON95 subsidy adjustment.