Kuala lumpur: No economic stimulus package will be introduced for the time being in response to the West Asia conflict, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He noted that the government's current approach is to focus on short-term measures to ensure economic stability while monitoring developments that could affect the country.
According to BERNAMA News Agency, Amir Hamzah emphasized the uncertainty of the Middle East crisis's duration, stating that if the situation does not persist, there may be no need for an economic stimulus package. He made these remarks after the Malaysia Co-Investment Fund (MyCIF) Engagement Day, reinforcing that the priority is to maintain short-term stability.
Prime Minister Datuk Seri Anwar Ibrahim previously assured that Malaysia's oil supply remains secure, with checks from Petronas confirming that the country's petroleum products would last at least until May. Amir Hamzah highlighted the government's awareness of increased fuel demand during the festive season, with oil companies taking proactive measures to handle these seasonal surges.
He further explained that the government's approach is to ensure medium and long-term stability, working with agencies to maintain stable supplies. Petronas and other oil and energy companies are expected to increase stockpiles to replenish domestic consumption.
Amir Hamzah also mentioned that the government bears RM3.2 billion monthly in fuel subsidies for public welfare, with petrol and diesel subsidies seeing significant rises. He urged the public and domestic companies to exercise caution and reduce energy usage where possible, noting the global impact of the situation.
The West Asia conflict began on February 28 when the United States and Israel launched attacks on Iran, prompting Tehran to respond with missile and drone strikes targeting US and allied interests in the region. The tensions have affected global energy markets, notably disrupting the strategic Strait of Hormuz, which handles around 20 percent of the world's oil supply, leading to fluctuating global oil prices and concerns over potential energy supply disruptions.