GEORGE TOWN: Penang must place greater emphasis on energy efficiency, food security and disciplined fiscal management in navigating increasingly volatile global conditions, says Yang di-Pertua Negeri Tun Ramli Ngah Talib.
He said the state cannot afford to remain a passive observer and must instead take proactive steps to strengthen its resilience amid global economic uncertainty.
He said prolonged geopolitical tensions, particularly in the Middle East, have triggered ripple effects on global market stability, especially in the energy sector and supply chains.
“In facing these challenging realities, Penang cannot merely be a spectator but must continue to act proactively in strengthening its internal capacity and resilience,” he said when opening the First Meeting of the Fourth Session of the 15th Penang State Legislative Assembly here on Friday (May 8).
Ramli said Malaysia, as an open economy, is not spared from these developments due to its significant reliance on the affected regions.
He noted that the exposure includes about 61% of crude oil imports, 30% of liquefied natural gas (LNG) imports, and nearly 40% of global oil flows passing through the Strait of Hormuz.
He added that the situation involves critical inputs such as fertilisers, helium and sulphur, which are essential to the country’s industrial and economic sectors.
“However, the national economic fundamentals remain strong and resilient, supported by the positive measures and policies implemented by the Federal Government under the leadership of Prime Minister Datuk Seri Anwar Ibrahim,” he said.
Based on projections and official data from the Department of Statistics Malaysia (DOSM), Ramli said Malaysia’s Gross Domestic Product (GDP) growth for 2026 is expected to range between 4% and 5%.
He added that the country’s inflation rate is also projected to remain moderate at between 1.5% and 2.5%, well below the long-term average.
“I am confident that the federal government will continue to monitor these developments prudently and take appropriate measures to ensure the welfare of the people is safeguarded, essential supplies are secured, and economic growth is sustained,” he said.
