Surging global energy prices puts Malaysia on alert for higher costs
SURGING global oil, gas and coal prices are putting renewed pressure on Malaysia’s energy, transport, business and household costs, prompting the government to prepare for prolonged supply disruptions and diversify sources of fuel and other key input...
Malaysia's government warns that surging global energy prices risk driving up costs across various sectors. Since March 2026, international markets have adjusted to inventory and supply shifts, but West Asia developments show rising uncertainty. Economy Minister Akmal Nasrullah Mohd Nasir highlighted that global supply risks have shifted from temporary shocks to potential prolonged disruptions.
Brent crude prices hit US$120 per barrel, with LNG reaching US$21.87 per MMBtu and coal at US$148 a tonne. Inflation in transport, housing, and fuel costs rose to 2.0%, 2.1%, and 2.1% respectively, while food inflation edged up to 1.9%. The government aims to keep domestic supply chains functional, secure essential goods, and prevent external cost pressures from harming households and economic activity.
Malaysia has diversified fuel imports, explored alternative sources, and strengthened energy cooperation with Thailand. Businesses face higher operating costs, and Bank Negara Malaysia's SME Stabilisation Relief Facility approved RM2.8 billion in financing. The government is seeking to reduce long-term exposure to global supply shocks by attracting investment and diversifying trade, positioning Malaysia as a "World+1" destination for companies pursuing de-risking strategies.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
