Malaysia Must Streamline Strategy Amid Global Energy Crisis - Expert

By Nabilah Saleh & Yasmin Ahmad Zukiman

KUALA LUMPUR, April 13 (Bernama) -- Malaysia must act swiftly and strategically to mitigate the risk of disruptions to global energy supplies amid escalating geopolitical tensions in the Strait of Hormuz.

Prof Dr Muhammad Fuad Othman of Universiti Utara Malaysia’s (UUM) School of International Studies said that remarks by United States President Donald Trump on the blockade of the Strait of Hormuz are expected to reduce global oil supplies, with Malaysia also likely to be significantly affected.

“Therefore, Malaysia needs to source supplies from other countries while also maximising local oil production,” he told Bernama when contacted today.

Muhammad Fuad said the shift towards renewable energy, including solar power, should be accelerated as a medium- and long-term measure, in addition to considering supply rationing if the situation required.

He said the expected depletion of national reserves by as early as May required swift action,including streamlining targeted subsidies to safeguard the well-being of the people, industry and the country.

Prime Minister Datuk Seri Anwar Ibrahim today said the government would continue reviewing and looking for new measures to address rising prices of essential goods and fuel.

Anwar, who is also Finance Minister, said a meeting involving the National Security Council (MKN), focusing on security implications, and the National Economic Action Council (MTEN), addressing economic concerns, would be held tomorrow.

In addition, the Prime Minister said the government had taken steps to ease the burden on the people, including maintaining the subsidised RON95 petrol price at RM1.99 per litre and providing diesel assistance for school buses.

In view of the possibility of prolonged conflict, Muhammad Fuad said the work-from-home (BDR) arrangement and virtual teaching and learning sessions should be strengthened, while large-scale projects could be temporarily postponed until the economic situation stabilised.

He also suggested that MTEN devise cost-saving measures to ease the impact of economic imbalances.

To protect vulnerable groups, Muhammad Fuad proposed the introduction of food coupons for the hardcore poor and the reintroduction of the School Food Assistance Programme, in addition to strengthening the use of public transport to reduce cost pressures.

Meanwhile, Security and International Relations Analyst at Universiti Malaya (UM) Collins Chong Yew Keat said Malaysia must maintain a clear and principled stance in the Iran-United States (US) conflict, while safeguarding national interests amid an increasingly complex geopolitical landscape.

“My principal understanding of this conflict remains unchanged. It is expected to continue for up to three months. Both sides still have incentives to pursue negotiations, including through unofficial channels, although neither wishes to appear weak in public,” he told Bernama.

Chong said both sides appeared to be seeking to maximise their ‘advantages’ and assess how far thresholds or red lines would be accepted during the two-week ceasefire period.

“This approach is a normal dynamic in any negotiation, especially when President Trump’s administration is seen as putting pressure on Tehran to return to the negotiating table from a weaker position, as part of its ‘maximum pressure’ strategy and negotiating from a position of strength,” he said.

Chong also did not rule out the risk of third-party and external interference, influence, sabotage or miscalculations during the ceasefire, which could derail efforts and reignite tensions.

Iran and the US began talks in Islamabad last Saturday after President Trump agreed to a two-week ceasefire with Tehran.

On Sunday morning, the head of the US delegation, Vice President JD Vance, announced that Iran and the US had failed to reach an agreement during the negotiations, with the US delegation returning home without a deal.

Following this, Trump announced that the US would impose a blockade on all ships entering or leaving the Strait of Hormuz, and directed the US Navy to interdict vessels paying tolls to Iran.

--BERNAMA