Govt To Discuss Global Energy Crisis Issues To Cabinet Amid Geopolitical Risks – Akmal Nasrullah

PUTRAJAYA, March 31 (Bernama) -- The government will raise issues related to the ongoing global energy crisis to the Cabinet for further deliberation, as part of its broader efforts to safeguard supply and manage economic risks arising from escalating geopolitical tensions.

Economy Minister Akmal Nasrullah Mohd Nasir said the ongoing global energy crisis was discussed at the National Economic Action Council (NEAC) meeting today, and the topic will be brought up at tomorrow’s Cabinet meeting.

“The government is taking a proactive approach to ensure supply continuity and mitigate the impact of the crisis, adding that current supply levels are sufficient at least until May. 

“Our focus at the moment is to ensure supply sufficiency,” he told reporters at the Seminar on Mapping Strategic Opportunities for Government-Linked Companies (GLCs) through the 13th Malaysia Plan (13MP) today.

Akmal Nasrullah emphasised that the government is also working to ensure continuity of supply in the medium term.

Commenting on the prolonged conflict in West Asia, which has lasted for over a month, he said the earliest timeframe for stabilisation is expected to take at least six months, and could extend up to a year, as damaged facilities such as refineries would require time to resume operations. 

“To restart operations such as refineries that were targeted during the conflict will take time before full recovery can be achieved,” he said.

Akmal Nasrullah said that the impact of the crisis would not be limited to the energy sector, particularly oil and gas, but is expected to spill over into other industries.

“When a global energy crisis occurs, input costs will be affected, especially for production and services. This will eventually have an impact on inflation,” he said.

As such, the ministry is actively engaging with various sectors, including small and medium enterprises (SMEs), to better understand the real impact at the industry level. 

“Yesterday, we had an engagement session with SME representatives from selected industries to understand the challenges they are facing and to identify early adjustments needed at their level.

“We are not only relying on official data but also zooming in on industry players’ experiences to ensure any supply chain disruptions can be addressed earlier,” said Akmal Nasrullah. 

While inflation in Malaysia remains manageable for now, there is an expectation that cost pressures may increase as industries begin to feel the full effects of the global energy crisis, he said.

“Inflation is still under control at this point. However, we must be prepared that input costs, particularly those related to energy, will rise and exert pressure on prices,” said Akmal Nasrullah. 

-- BERNAMA