Malaysia

Fadillah: Govt rules out abrupt fuel subsidy changes despite Middle East pressures

The Deputy PM II says policy decisions will be data-driven as government balances energy security, economic growth and public protection

Updated 4 months ago · Published on 21 Apr 2026 12:53PM

Fadillah: Govt rules out abrupt fuel subsidy changes despite Middle East pressures
The government always seeks a cautious and data-driven approach to energy policy - April 21, 2026

AUTHORITIES will not introduce sudden changes to its fuel subsidy framework despite mounting pressure from geopolitical tensions in the Middle East, Deputy Prime Minister II Datuk Seri Fadillah Yusof has said, signalling a cautious and data-driven approach to energy policy.

Speaking during an interview on Bernama Radio at Wisma Bernama on Tuesday, Fadillah stressed that any adjustments would be based on comprehensive analysis rather than reactive measures, even as global energy markets face sustained volatility.

He acknowledged that the ongoing conflict in the Middle East could persist for one to two years, but said the government’s priority remained safeguarding the majority of Malaysians while ensuring economic continuity.

"This is a challenge we are aware of, and we must rely on data to determine the necessary steps to ensure energy supply remains secure, the people are protected, economic growth continues, and industries receive the support they need," he said.

The remarks come amid heightened concerns over global fuel prices and supply disruptions, which have placed added strain on subsidy regimes across many economies.

Fadillah reiterated that maintaining energy security and shielding households from abrupt cost increases would remain central to policymaking, while also supporting industries navigating higher input costs.

"So, this is certainly a challenge we recognise, and from there we must look at the data to decide what needs to be implemented to ensure our energy supply is guaranteed, the people are protected, economic growth continues, and industries are supported in line with current efforts," he added.

His comments underscore the government’s intention to balance fiscal sustainability with social protection, as Malaysia navigates an increasingly uncertain global energy landscape shaped by prolonged geopolitical tensions. - April 21, 2026

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