Malaysia’s status as a net crude petroleum importer, uneven net petroleum products exporter and net liquefied natural gas exporter creates a mixed exposure to global energy shocks, if it is prolonged. The design of options, policy response and support measures need to balance the following objectives, taking into account the duration of global energy shocks (temporary or permanent), fiscal space and fiscal cost, strategic petroleum reserves as well as the targeted sectors. Facilitating gradual adjustment to energy supply shocks in anticipation of a persistent oil price spike is inevitable. Options to optimise policy responseThere is a central dilemma for policymakers managing energy shocks, as it delineates between the short-lived and persistent scarring due to the exceptional uncertainty about the energy-inflicted cost and scale of the impact. The government can consider to provide temporary fuel subsidies to domestic inbound tourist transport operators facing higher operating costs due to the surge in fuel costs.

Source: The Star March 23, 2026 01:57 UTC