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

IPOH, August 20 — Malaysia is in a better position to manage the repercussions of the Strait of Hormuz disruption compared to nations that solely rely on imported energy, stated Investment, Trade and Industry Minister Johari Abdul Ghani. Although Malaysia is still an importer of oil, its status as a major net exporter of liquefied natural gas (LNG) serves as a vital strategic safeguard.

In an interview following the 'Invest in Perak Day' event at Hotel Casuarina Meru, the minister acknowledged that while the country will experience the same impacts as other nations, the effects will be less severe than those faced by non-oil and gas-dependent countries. The Minister spoke out amid growing concerns over the escalating Middle Eastern geopolitical crisis.

He emphasized the critical role the Strait of Hormuz plays in the global energy sector, noting that any disruption inevitably impacts industries worldwide. "When the energy sector is affected, all industries will be affected," he explained. Tensions in the region intensified recently following U.S. President Donald Trump's provocative map on Truth Social labeling the Strait of Hormuz as "NEW U.S. Territory".

In response to the ongoing conflict between the U.S. and Israel that began in late February, Iran has effectively closed the chokepoint. The strait usually allows the passage of about 20% of the world's total oil supply.