Malaysia

PM set to unveil national oil security plan amid Hormuz supply threat

Anwar is expected to announce a national oil supply continuity plan this month as Malaysia moves to shield its economy from mounting global energy uncertainty linked to the West Asia conflict

Updated 4 months ago · Published on 10 May 2026 8:07AM

PM set to unveil national oil security plan amid Hormuz supply threat
The plan aims to ensure Malaysia maintains sufficient fuel reserves and stable energy access despite growing uncertainty surrounding the Strait of Hormuz - May 10, 2026

THE government is preparing to roll out a national strategy to safeguard fuel supplies and strengthen energy resilience as escalating geopolitical tensions in West Asia continue to threaten global oil markets and maritime supply routes.

Economy Minister Akmal Nasrullah Mohd Nasir said Prime Minister Datuk Seri Anwar Ibrahim is expected to announce a comprehensive oil supply continuity plan in mid-May, aimed at ensuring Malaysia maintains sufficient fuel reserves and stable energy access despite growing uncertainty surrounding the Strait of Hormuz.

The move comes as governments and markets worldwide remain on edge over the possibility of prolonged disruptions to one of the world’s most strategically important oil transit corridors.

Akmal said the government’s priority was to guarantee uninterrupted domestic oil supplies in order to protect economic activity and avoid major disruptions to industry and transportation sectors.

He noted that the government had previously assured that existing national fuel reserves were sufficient to last until June while additional contingency arrangements were being finalised.

According to the minister, Petroliam Nasional Bhd (Petronas) is currently concluding negotiations and arrangements to secure alternative sources of oil supply as part of broader mitigation efforts.

“The Prime Minister previously said several new sources are being finalised. He is expected to present the next schedule regarding the country’s oil supply,” he told reporters during the forum “Energy Crisis 2026: Are We Ready to Rethink Refuel?” held in conjunction with the Universiti Malaya Economics Summit.

Akmal said Malaysia remained operationally prepared to manage potential supply disruptions due to existing intervention mechanisms and fuel management systems already implemented by the authorities.

He added that regional cooperation was also being explored as part of a longer-term strategy to strengthen collective energy security among Southeast Asian nations.

“I understand there are discussions regarding regional reserves at the ASEAN level, but the framework, mechanisms, and related matters require further details as they involve diplomacy and relations among member countries,” he said.

Alongside efforts to diversify supply sources, the government is also accelerating plans to expand biodiesel usage in order to reduce pressure on conventional diesel supplies.

Akmal said Putrajaya remained optimistic that the nationwide implementation of the B15 biodiesel programme could begin on June 1 as part of measures to extend diesel availability and improve fuel sustainability.

He said the operational framework for the biodiesel supply chain, including fuel distribution to petrol stations nationwide, was already in place and had received strong support from relevant ministries and government agencies.

The anticipated announcement by Anwar is expected to form part of a broader national response to rising global energy instability, with policymakers increasingly concerned that prolonged geopolitical conflict could trigger renewed inflationary pressure and supply chain disruptions across the region. - May 10, 2026

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