Malaysia expects energy price, supply instability for at least another year


Economy Minister Akmal Nasrullah Mohd Nasir.

KUALA LUMPUR: Malaysia expects global energy markets to begin stabilising in the third quarter of 2026, though price and supply volatility will continue to have an impact for the next one or two years, the country's Economy Minister Akmal Nasir said on Monday.

Akmal was speaking in parliament about Malaysia's efforts to mitigate the impact of the global energy crisis sparked by the war in Iran and the closure of the Strait of Hormuz, a key waterway for the world's fuel supplies.

Here are more details:

* Akmal said Malaysia's fuel supplies were sufficient to last until the end of August, with the government continuing efforts to secure additional reserves.

* A government task force looking at the crisis has proposed 120 intervention measures, with 27 fully implemented so far, including adjustments to fuel subsidies and expanded financial assistance for small and medium-sized businesses.

* Authorities were also stepping up efforts to boost food security, with fertiliser costs expected to rise between 15% and 20% while prices of livestock feed were seen increasing by 8%, Akmal said.

* Malaysia's rice supplies were enough to last five or six months, while the supply of other staple foods such as chicken, fish, fruit, milk, and eggs was enough for at least one month, he said.

* The economy will continue to be supported by strong domestic demand, with the inflation rate remaining modest at 2% in May, compared to 1.9% the previous month, he added. - Reuters 

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