Stopping exports is ‘last resort’: Malaysia Deputy PM
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Mr Fadillah Yusof said stopping exports will be the last resort because of agreements in place.
PHOTO: REUTERS
PETALING JAYA - Halting general petroleum exports will be the last resort of the government if the ongoing Middle East conflict worsens, said Malaysian Deputy Prime Minister Fadillah Yusof.
He said this was because Petronas has existing commitments.
“Stopping exports will be the last resort because we are still bound by agreements,” said Datuk Seri Fadillah when met by reporters during an event at Samariang in Kuching on March 14.
According to the Statistics Department, Malaysia exported RM174.6 billion (S$57 billion) worth of oil and gas products in 2025, comprising RM103.55 billion in refined products and RM71.05 billion in crude and liquefied natural gas.
Mr Fadillah, who is also in charge of the Energy Transition and Water Transformation Ministry, said the situation remains stable due to the nation’s strong economic and fiscal position.
“But at the same time, we must take preventative measures,” he added.
Mr Fadillah also did not dismiss the possibility that the cost to perform the haj will increase due to the conflict.
He added that Tabung Haji, the Muslim pilgrimage fund, had begun talks with local and international airlines and an announcement will be made by the Religious Affairs Minister soon.
On a related matter, Mr Fadillah said Prime Minister Anwar Ibrahim has been contacted by Gulf leaders to act as a mediator in the ongoing Middle East conflict.
“The Prime Minister was contacted by Gulf countries to be a mediator in negotiations.
“Let’s pray that the conflict in the Gulf can be resolved, or at least open the Strait of Hormuz so that transportation can continue,” said Mr Fadillah.
As at March 14, the Brent crude oil price rose to US$103.
On March 9, the Brent crude price surged past US$110 per barrel, the highest increase in decades.
The fluctuation in crude oil prices follows the closure of the Strait of Hormuz by Iran on March 9 after the United States and Israel escalated attacks on the country.
On March 13, Second Finance Minister Amir Hamzah Azizan said petrol subsidies alone are estimated to jump to about RM2 billion while diesel subsidies have increased to about RM1.2 billion.
This brings the total fuel subsidy for RON95 and diesel to RM3.2 billion.
This is an overall increase of RM2.5 billion compared with the RM700 million before the conflict.
Datuk Seri Anwar has said that if the Middle East conflict persists until the end of the year, RON95 subsidies could add up to RM24 billion by the year end. THE STAR/ ASIA NEWS NETWORK
