PUTRAJAYA: Malaysia will prioritise meeting its own fuel requirements and fulfill local needs before supplying any excess to Australia, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the government had obtained assurances from PETRONAS of sufficient supply for local consumption, with any surplus channelled to trusted partners such as Australia.
“I did express our concern on the issue of diesel because our supply is inadequate in the medium term.
“But in terms of fuel, we have obtained an assurance from PETRONAS that once the domestic requirements are met, there is clearly some excess, and we’ve given an assurance that the priority will be to Australia.
“But the priority is, of course, on domestic requirements and economic resilience within the country,” he said at a joint press conference with visiting Australian Prime Minister Anthony Albanese.
Describing Australia as a “mate” to Malaysia, Anwar said such arrangements reflect the importance of negotiations and mutual understanding between friendly nations, particularly as both countries rely on each other for strategic resources.
Malaysia, Anwar said, imports gas, including liquefied natural gas (LNG) from Australia, which has reaffirmed its commitment to honour existing supply agreements.
In turn, Malaysia will ensure that Australia’s fuel requirements are fulfilled once domestic needs are secured.
“That’s what friendship is all about. I think we have achieved that sort of understanding, and I’m glad to say that Prime Minister Albanese will have, with his team, a detailed discussions with PETRONAS,” he said.
In a joint statement, Malaysia and Australia pledged to work together to strengthen energy supply chain resilience and deepen regional cooperation amid the ongoing Middle East crisis.
Both countries shared deep concern over the conflict in the Middle East, its escalation and consequences on the region, including the impact on energy supply chains, prices and flows of essential energy supplies.
“We recognise the complementarity of our trade and economic partnership and the role our countries play in each other’s energy security.
“Both countries serve as energy suppliers to one another, underpinning a mutually important energy security relationship,” said the two leaders.
Both countries also affirmed their shared commitment to open, rules-based trade in energy products.
“We commit to promote open and stable trade flows between our two countries, including for essential energy supplies.
“We will exchange views on energy trade-related matters on a ‘no surprises’ basis, and deepen practical cooperation on energy security for both countries to achieve shared goals,” said the statement.
The two leaders also witnessed the signing of a Memorandum of Understanding between the Department of Islamic Development and Australia’s Department of Agriculture, Forestry and Fisheries, marking a key step in enhancing market access and strengthening food security cooperation between the two countries.
Anwar said the agreement reflects Malaysia and Australia’s commitment to ensuring a sustainable food supply amid growing global uncertainties.
He said the significance of the agreement goes beyond policy and has a direct impact on the people, particularly at a time when supply chains are under pressure and food prices are rising.
Australia is Malaysia’s 12th largest trading partner in 2025, with total bilateral trade valued at RM78.63bil.
Malaysia and Australia elevated their relations to a Comprehensive Strategic Partnership (CSP) in 2021, providing a framework to further expand cooperation across three key pillars: economic prosperity, society and technology, and defence and regional security.
