PETALING JAYA — Malaysia’s monthly RON95 and diesel subsidy costs skyrocketed from RM700 million (S$227 million) to RM3.2 billion in less than a week, Prime Minister Anwar Ibrahim announced Sunday, March 22, as Middle East shipping disruptions drove global oil prices from US$70 to nearly US$120 per barrel.
The Strait of Hormuz blockade, choking 20% of world oil flows, has slashed supplies, battering import-heavy Malaysia despite its production. Anwar highlighted 2025 crude exports at US$5.5 billion (S$7 billion) versus US$12.6 billion imports, creating a US$7 billion deficit; refining, shipping, and insurance costs have all spiked in the conflict.
Ripple effects threaten transport fares, food inflation, and family budgets across the nation, prompting the government to boost subsidies and shield citizens from the full shock.
“In these challenging times, Malaysia has chosen to absorb part of the global cost pressures to protect the rakyat (people),” Anwar stated in a Facebook video, expressing optimism based on past resilience against such strains.