KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed that the government will move ahead with its plan to rationalise subsidies for RON95 petrol, asserting that the move is essential for the country’s long-term fiscal health despite the recent volatility in global oil markets.
Speaking at the launch of the Energy Asia 2025 conference on Monday (June 16), Anwar said the initiative would not burden the majority of Malaysians, who would remain protected under the new system, the Star reported.
“There is no issue of raising the price of petrol for the vast majority of up to 85% to 95% of our people. Will we do it? Yes, because subsidy rationalisation is critical for our nation.
“We want sufficient resources to help the poor, enhance education quality, and provide better public services, including health,” he said.
Anwar also took aim at the opposition, accusing them of attempting to sow public unease over the government’s reform agenda.
“Whatever the opposition says is just a desperate gimmick to show that people are facing hardship. There is more negative news from them when we need encouraging news to propel our economy,” he added.
The Prime Minister addressed concerns over the possible economic impact of the ongoing conflict between Israel and Iran, which has pushed crude oil prices up by more than 9%, reaching around US$75 per barrel last Friday. Prior to the escalation, oil prices had seen a decline, falling below US$65 per barrel last year.
Anwar noted that while the geopolitical situation is being closely monitored by major energy players, including the Organisation of the Petroleum Exporting Countries (OPEC), there is no indication yet that it will seriously disrupt the industry.
“For now, I have discussed this with the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) and leading players other than PETRONAS, Total, ENI, and Aramco.
“They are monitoring the situation very closely, but it does not necessarily adversely affect the industry and price mechanism. We hope that things can be resolved much earlier,” he said.
He also warned of broader implications should the Strait of Hormuz—one of the world’s most important oil transit routes—be impacted, noting that it plays a critical role in both energy exports and trade across the Middle East.
In relation to the conflict, Anwar called on the United States, the European Union, and other international powers to exert pressure on Israel to halt its actions against Iran and to prevent further escalation.
He said Iran’s recent retaliatory actions were a response to earlier acts of aggression by Israel, and urged both nations to end their hostilities to preserve regional stability.
Meanwhile, Anwar highlighted that major global energy companies, including Total, ENI, and Saudi Aramco, have expressed confidence in Malaysia’s energy sector through planned investments.
“Several key agreements related to investments in Malaysia will be signed at the Energy Asia 2025 Conference, which will be held over three days,” he said, noting the involvement of PETRONAS in these developments.
Energy Asia 2025, held from June 16 to 18 under the theme Delivering Asia’s Energy, brings together over 4,000 delegates and 180 speakers, including senior policymakers, energy executives, and industry experts.
A central component of the event is a high-level closed-door session involving top global CEOs from the energy, technology, finance, and professional services sectors.
The dialogue aims to foster greater investment coordination and accelerate the adoption of clean energy technologies across the region.
The conference is seen as a pivotal platform for assessing progress toward energy transition and strengthening commitments to achieving net-zero carbon emissions, especially as Asia balances economic development with the push toward renewable energy, hydrogen, and carbon capture technologies. – June 16, 2025