Malaysia leverages its oil production to mitigate global energy price impacts, using Petronas dividends and targeted subsidies to protect citizens.

KUALA LUMPUR: Malaysia’s position as an oil producer provides a strategic advantage in shielding its citizens from the full impact of rising global energy prices.

Tengku Datuk Seri Zafrul Abdul Aziz, chairman of the Malaysian Investment Development Authority (MIDA), explained that increased global oil prices boost national revenue from the sector.

He cited Petroliam Nasional Bhd (Petronas) dividends of approximately RM32 billion for the 2025 financial year and around RM20 billion for 2026 as examples of this revenue.

“Yes, there are indeed effects when global oil prices rise – transportation and goods costs around the world also increase,” he said in a social media post.

He added that the public will feel the impact, but the country’s producer status helps reduce the effect on the people.

Malaysia produced about 184 million barrels of crude oil and condensate in 2025.

The government maintains the RON95 petrol price at RM1.99 per litre for eligible citizens through the BUDI95 programme.

Tengku Zafrul highlighted that although the unsubsidised price is higher, targeted subsidies ensure assistance reaches those in need and reduces leakages.

“It is important for people to understand that when global oil prices rise, many countries simply bear higher costs,” he said.

He concluded that Malaysia is different because it produces oil and uses that strength to protect the people.

 The Sun Malaysia