Hormuz Strait risks could push up Malaysia’s energy costs, says Economy Minister


KUALA LUMPUR: A temporary closure or restriction of the Strait of Hormuz could impact industrial energy costs, electricity generation, and household fuel expenditures, said Economy Minister Akmal Nasrullah Nasir (pic).

He said this during his plenary address at the OGSE100 CEOs Forum 2026 here on Tuesday (March 3).

"We have seen oil prices spike sharply as markets factor in potential supply disruptions. This matters to us in Malaysia because LNG (Liquid Natural Gas), which Malaysia imports from Australia and other suppliers, is closely linked to global oil prices," he said.

He said any closure of the vital energy transit chokepoint would pose a significant risk that industry players must closely monitor, as it could drive up risk premiums on energy imports and further strain global supply chains.

The minister said the ongoing Middle East conflict adds uncertainty to fuel costs, electricity pricing and overall energy security for Malaysian businesses and the power sector.

"That is why it is important to diversify our energy sources, strengthen domestic generation capacity, and accelerate renewable and transition technologies," he said. – Bernama

 

 

 

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