Jo Ghani: Malaysia’s LNG exports cushioning blow of Hormuz crisis

IPOH, Aug 20 — Malaysia is better positioned to handle the repercussions of the Strait of Hormuz disruption compared to countries solely reliant on imported energy, according to Investment, Trade and Industry Minister Johari Abdul Ghani. Although Malaysia is still a net importer of oil, its position as a major exporter of liquefied natural gas (LNG) provides a vital strategic safety net.

"We will suffer the same consequences as other nations, but not to the same degree," he stated. In an interview following the 'Invest in Perak Day' event at Hotel Casuarina Meru, the Minister discussed the escalating geopolitical crisis in the Middle East. Describing the Strait of Hormuz as a vital artery for the global energy sector, he warned that any supply disruptions there would have widespread effects on various industries worldwide.

"The Strait of Hormuz is closely linked to the energy sector, and when the energy sector is impacted, it affects all industries," he elaborated. Tensions in the region have recently intensified following US President Donald Trump's controversial claim on social media that the Strait of Hormuz had become a "NEW U.S. Territory". Following the ongoing conflict between the US and Israel, which began in late February, Iran has effectively blocked the strait. The strait typically accommodates about 20% of the world's total oil trade.