Malaysia will not introduce an economic stimulus package for now, focusing on short-term stability measures and monitoring the West Asia conflict’s impact
KUALA LUMPUR: The government will not introduce an economic stimulus package for now following the conflict in West Asia.
Second Finance Minister Datuk Seri Amir Hamzah Azizan said the current approach is to focus on short-term measures to ensure economic stability and monitor any developments that could impact the country.
“I think what’s important is we don’t yet know whether the crisis in the Middle East will persist or not. If it does not persist, I think there is no need to implement something like that (an economic stimulus package),” he told reporters after launching the Malaysia Co-Investment Fund (MyCIF) Engagement Day here.
He said the government is also considering people’s travel during the festive season, which typically sees higher demand for fuel.
Oil companies have experience managing this situation annually by taking proactive steps, including increasing supply and placing more storage tanks in high-usage areas to ensure uninterrupted supply.
“The government’s approach is for the medium and long term. We are working with agencies under the government to ensure supply remains stable,” he said.
Petronas and other oil and energy companies will continue to look at increasing existing stock to replace supply used domestically.
He said the government is currently focused on helping the people while urging the public and local companies to adopt a cautious approach.
“If there are ways to reduce energy usage or the use of other goods that might be affected in this situation, it will help. We must understand, this impact is not only on Malaysia but across the whole world,” he said.
Previously, Amir Hamzah said the government bears a fuel subsidy of RM3.2 billion monthly for the people’s well-being.
The government’s subsidy for petrol has increased to RM2 billion, while the diesel subsidy has risen to RM1.2 billion per month compared to RM700 million previously.
The conflict in West Asia began on Feb 28 when the United States and Israel launched attacks on Iran, which Tehran retaliated against with missile and drone attacks on US interests and its allies in the region.
The tensions have also affected the global energy market as the strategic Strait of Hormuz, handling about 20% of the world’s oil supply, was impacted following Iran’s threats and actions to block ship passage in the area.
This situation has caused global oil prices to become volatile due to concerns about disruptions to global energy supply.
The Sun Malaysia
