MALAYSIA will not introduce an economic stimulus package for the time being despite escalating tensions in West Asia, with the government opting instead to focus on short-term measures to preserve economic stability.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government is closely monitoring developments linked to the conflict involving Iran, while assessing their potential impact on Malaysia’s economy.
“I think what is important is that we do not yet know whether the crisis in West Asia will continue or not. If it does not continue, I think there is no need to implement something like that (an economic stimulus package).
“For now, our approach is to look at the short term and ensure the stability that we have,” he told reporters after launching the engagement day of the Malaysia Co-Investment Fund in Kuala Lumpur.
The government’s current strategy centres on safeguarding economic conditions while closely tracking global developments that may affect Malaysia, particularly in energy markets.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim said the country’s petroleum supply remains stable after a review conducted with Petroliam Nasional Berhad found that Malaysia has sufficient petroleum product supplies at least until May.
Amir said authorities are also considering seasonal travel patterns, especially during festive periods when fuel demand typically increases.
He noted that oil companies are experienced in managing such situations each year by taking proactive measures such as increasing supply levels and deploying additional storage tanks in areas with higher consumption to ensure continuous availability.
“The government’s approach is for the medium and long term. We are working with agencies under the government to ensure supply remains stable.
“Petronas and other oil and energy companies will continue to look at increasing existing stock to replace the supply used domestically,” he said.
He added that the government is also encouraging the public and businesses to exercise caution in their energy consumption during the current period of uncertainty.
“If there are ways to reduce energy use or the consumption of other goods that may be affected in this situation, it will help.
“We must understand that the impact is not only on Malaysia but across the world,” he said.
The government is currently spending about RM3.2 billion a month on fuel subsidies to support consumers.
According to Amir, subsidies for petrol have risen to RM2 billion monthly while diesel subsidies have increased to RM1.2 billion, compared with RM700 million previously.
The latest regional tensions began on Feb 28 when the United States and Israel launched attacks on Iran, prompting retaliatory missile and drone strikes by Tehran against US interests and its allies in the region.
The conflict has disrupted global energy markets, particularly after threats affecting shipping through the Strait of Hormuz, a vital corridor that carries about 20 per cent of the world’s oil supply.
As a result, global oil prices have become increasingly volatile amid concerns over potential disruptions to international energy supplies. - March 16, 2026
