KUALA LUMPUR: Malaysia should adopt a phased and fiscally prudent approach if it decides to establish a national petroleum reserve stock, ensuring the initiative strengthens long-term energy resilience without placing unnecessary pressure on public finances, says IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan.
The government should avoid replicating large-scale strategic petroleum reserve models adopted by countries such as the United States and Japan, given Malaysia’s different fiscal capacity and energy risk profile, according to him.
“The key question is not whether Malaysia needs the largest reserve, but what level of reserve is appropriate given its fiscal capacity and energy risk profile. Any investment must pass a rigorous cost-benefit assessment because public resources are limited and competing priorities such as healthcare, education and food security also require funding,” he told Bernama.
Prime Minister Datuk Seri Anwar Ibrahim said on Wednesday the government would study the need and strategies for creating a national petroleum reserve stock to strengthen the country’s energy security amid growing geopolitical uncertainties.
