KUALA LUMPUR: Any policy decisions regarding fuel subsidy will be guided by comprehensibe data analysis rather than rushed measures, says Datuk Seri Fadillah Yusof (pic).
The Deputy Prime Minister said while the government recognises that the conflict in the Middle East could persist, action taken will prioritise protecting the majority of Malaysians.
“This is a challenge we are aware of. We must rely on data to determine the necessary steps to ensure energy supply remains secure, the people are protected, economic growth continues and industries receive the support they need,” he said.
Fadillah, who is also Energy Transition and Water Transformation Minister, said the government would maintain fuel subsidies despite a sharp rise in costs driven by the global energy crisis.
He said monthly subsidy spending has surged to between RM6bil and RM7bil, but stressed that support for the people would continue without derailing economic development plans.
“Existing subsidy policies, including those for RON95 petrol and diesel in Sabah and Sarawak, will be maintained based on current data to ensure sudden increases in living costs do not burden the people,” he said, Bernama reported.
The National Economic Action Council would also continue to engage with industry players and stakeholders to develop balanced policy responses, he added.
Fadillah said the government is preparing for worst-case scenarios if disruptions persist for up to three years, particularly following supply chain shocks linked to the Strait of Hormuz, which handles about a quarter of global energy supply.
He said PETRONAS has taken proactive steps to secure alternative supplies from Asia-Pacific, Australia, South America and Africa to ensure domestic stability.
At the same time, Fadillah said enforcement is being strengthened to curb leakages and the smuggling of subsidised fuel at the borders.
“Equally important is the prudent use of energy and water. If we act together, we can ensure supply security is sustained over the longer term,” he said.
On another matter, the Deputy Prime Minister said Malaysia will not remain passive on issues of international sovereignty despite its neutral diplomatic stance.
He described the country’s diplomacy as pragmatic and independent, with Malaysia maintaining positive relations with all parties while upholding principles of global justice.
“When we say we are neutral, it does not mean we are passive. We have principles and we engage pragmatically with all relevant parties,” he said.
Despite taking firm positions on sovereignty, Fadillah said Malaysia continues to balance its diplomatic ties, particularly in trade, to safeguard economic growth.
“Our trade relations with China, the US, Europe and the Asean region continue to grow,” he said.
