KUALA LUMPUR — Within ASEAN, Malaysia is the third most reliant country on crude oil from the Persian Gulf, where war between US-Israeli forces and Iran has choked oil shipments from passing through the Strait of Hormuz.
Malaysia’s crude oil import exposure from the region stands at 69%, behind Philippines which has the largest exposure at 95%, followed by Vietnam at 88%, said Maybank Investment Bank (Maybank IB).
“The Philippines is considered the most vulnerable, given its near-total reliance on imported oil and its overwhelming dependence on Persian Gulf suppliers,” Maybank IB said in a research note, reported by Bernama.
In Malaysia, government subsidies have risen from around RM700 million to RM3.2 billion in less than a week following the surge in global oil prices caused by the conflict in West Asia.
It has recently increased the unsubsidised fuel price to match the increase. However, subsidies for the general public remain through Budi Madani RON95 (BUDI95) and BUDI Diesel.
Deputy Prime Minister Datuk Seri Fadillah Yusof yesterday said that Petroliam Nasional Berhad (Petronas) is exploring alternative sources of gas and fuel amid concerns over a prolonged disruption in the Strait of Hormuz.
Fadillah, who also serves as Energy Transition and Water Transformation Minister, said the national oil firm is evaluating contingency measures. This includes studying how countries in the Asia-Pacific region, such as Australia, are managing similar supply challenges.
Malaysia also sources 7% of urea fertiliser from Gulf countries.
Other ASEAN countries such as Thailand and Singapore have 59% and 52% exposure to crude oil from the Persian Gulf, respectively, Maybank IB said.
Indonesia, however, has a more diversified import profile, with 20% of its crude sourced from Gulf countries.
Compounding risks for ASEAN is China’s move to curb exports of refined petroleum products such as diesel, petrol and jet fuel, Maybank IB added.
While most of its output is consumed domestically, China exported 5.8 million tonnes of refined products in 2025, with key markets including Singapore, Vietnam, Japan and South Korea.
Within Asia, China and India are the largest importers of crude oil and liquefied natural gas (LNG) that pass through the Strait of Hormuz.
Singapore, meanwhile, plays a critical role as a leading international jet fuel hub, making any disruption to refined product flows particularly impactful for regional supply chains.
In terms of diesel imports, Singapore has the highest dependency among ASEAN countries, sourcing 16% from Gulf nations. Indonesia follows at 8.4%, while Thailand stands at 6.8%.
Maybank IB said the region’s reliance on external energy sources underscores its exposure to supply shocks, particularly in scenarios where major producers or refiners impose export restrictions to safeguard domestic needs.
As for gas, Vietnam is the most dependent, with around 70% of liquefied petroleum gas (LPG) imports originating from the Middle East.
The Gulf accounts for 37% of Indonesia’s gas imports, Thailand 28% and Singapore 17%. Singapore relies on natural gas for 95% of its power generation needs. – March 23, 2026