Kuala lumpur: The government will not introduce abrupt or sudden changes to fuel subsidy policies despite mounting pressure from geopolitical tensions in West Asia, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. In fact, he assured that any policy decisions would be guided by comprehensive data analysis rather than rushed measures.
According to BERNAMA News Agency, Fadillah said the government recognises that the conflict in West Asia could persist for one to two years, but any action taken will prioritise protecting the majority of Malaysians. He emphasized the need to rely on data to determine the necessary steps to ensure energy supply remains secure, the people are protected, economic growth continues, and industries receive the support they need.
He shared these insights during an exclusive interview on Bernama Radio regarding how geopolitical crises drive Malaysia's energy transition, held at Wisma Bernama. Fadillah, who is also Minister of Energy Transition and Water Transformation, stated that the government will maintain fuel subsidies despite a sharp rise in costs driven by the global energy crisis.
Monthly subsidy spending has surged to between RM6 billion and RM7 billion, but Fadillah stressed that support for the people would continue without derailing economic development plans. He confirmed that existing subsidy policies, including for RON95 petrol and diesel in Sabah and Sarawak, will be maintained based on current data to ensure sudden increases in living costs do not burden people.
The National Economic Action Council (MTEN) will continue to engage with industry players and stakeholders to develop balanced policy responses. On the outlook for the crisis, Fadillah mentioned that the government is preparing for worst-case scenarios if disruptions persist for up to three years, particularly following supply chain shocks linked to the Strait of Hormuz.
Fadillah noted that Petronas has taken proactive steps to secure alternative supplies from regions such as the Asia-Pacific, Australia, South America, and Africa to ensure domestic stability. The government is also strengthening enforcement to curb leakages and smuggling of subsidised fuel at the borders. He called for public cooperation to report any abuse to ensure that supplies benefit Malaysians.
Fadillah concluded by highlighting the importance of the prudent use of energy and water, stating that collective action can ensure sustained supply security over the longer term.