KUALA LUMPUR: Malaysians were cushioned from the worst impact of global inflation through targeted fuel subsidies, which helped contain sharp increases in operating costs even as global fuel prices surged, says Economy Minister Akmal Nasrullah Mohd Nasir (pic).
He said based on global readings, global inflation was projected at around 4.3%, which has a significant impact on consumers in terms of material costs.
“However, in Malaysia, as we continue to maintain assistance through subsidies, either through the Budi Madani programme or the Subsidised Diesel Control System (SKDS), this helps restrain the increase (in inflation) from becoming too significant.
“Simultaneously, when prices show a downward trend, this is an opportunity for us to ensure that adjustments are made, and that any reduction is in line with the decrease in energy costs,” he told Parliament yesterday.
He said the government was closely monitoring whether the recent downward trend in global oil prices was being reflected in lower logistics costs and import prices for food items, and whether such reductions were passed through to food production costs.
Akmal Nasrullah said Malaysia must strengthen its position within the global economic value chain in order to improve long-term resilience.
He said the government could not continue relying on existing economic structures and must instead shift towards higher value activities to ensure sustainable growth.
“At present, we remain committed to the energy transition, which is not only about achieving net zero by 2050, but also about strengthening our capability and resilience, including at the domestic level.
“The game changer is happening now.
“Strengthening the country’s economic position is not something that can be done in two or three months, but this direction has already been set by the government and the continuity should not become merely a point of political contention,” he said.
The minister also said Malaysia has secured sufficient fuel supplies until August this year as the government steps up efforts to safeguard energy security.
Akmal Nasrullah said ensuring uninterrupted fuel supply was crucial to keep daily activities, public transport, logistics, businesses and other critical sectors operating smoothly.
He said the 13th Malaysia Plan (13MP) would continue driving the country’s energy transition through the expansion of renewable energy and the more strategic use of domestic energy resources.
He said the phased rollout of B15 biodiesel, which began on June 1 this year, was among the early measures to reduce reliance on imported fossil diesel and strengthen the country’s long-term fuel supply resilience.
“As of now, 69% of operations at the country’s 33 blending depots have begun producing B12 and B15 biodiesel blends,” he said.
He said global uncertainty over energy prices and supply was expected to continue weighing on markets for another year or two, with conditions likely to begin stabilising gradually from the third quarter of 2026.
