KUALA LUMPUR, March 9 — Malaysia's economic performance last year, which recorded 5.2 per cent growth, is expected to cushion the country against global economic uncertainties and bolster its performance in the first quarter (1Q) of this year, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
The implications of the Middle East conflict carry global consequences, as energy prices influence inflation and borrowing costs.
“However, for Malaysia, the government is managing the situation and monitoring developments in the Middle East very closely.
“Malaysia's position as a net oil exporter places the country in a reasonable position despite oil prices surging above US$100 per barrel today,” he told the media after attending the 2nd ASEAN Banking and Finance Summit themed 'Navigating Banking in a New Geoeconomic Era - Enhancing Trust, Technology, Talent, Transformation' today.
Global oil prices have risen significantly since tensions in the Middle East escalated over the past week, with Brent crude now trading at US$115.40 per barrel, up from about US$70 per barrel a week ago.
“Malaysia’s economy grew 5.2 per cent in 2025, exceeding our own forecasts. Domestic demand remains resilient, and investment is surging, driven by multi-year infrastructure projects,” Amir said.
He added that the country’s fiscal deficit is narrowing towards the three per cent target under the Public Finance and Fiscal Responsibility Act 2023, while the ringgit has strengthened.
Regarding RON95 petrol, the government will aim to maintain the subsidised price of RM1.99 per litre for the next two months.
“This is because we have the capacity to do that. However, for the open market, the current (global) price will reflect the price being transmitted through,” Amir said.
To a question on whether a higher subsidy bill would be offset by increased petroleum revenue and whether Petroliam Nasional Bhd’s dividend would increase due to higher oil prices, the minister said it is too early to determine.
“This is still in the early days, but the key is for us to make sure that we secure a steady supply,” he said.
Amir assured that the country's oil supply remains stable and that there will be no supply disruptions.
Earlier in his keynote speech, he said the escalating geopolitical conflict involving the United States, Israel, and Iran has evolved from a contained crisis into a regional conflict with global consequences.
Retaliatory strikes across the Gulf signal growing instability, with immediate implications for the financial sector and the broader global economy.
“Energy prices feed directly into inflation, borrowing costs and the credit risk calculations that banks make every day.
“Supply chain disruptions also affect the borrowers that banks finance,” Amir said.
Geopolitical instability could also reshape the investment appetite of multinational corporations that countries such as Malaysia are seeking to attract.
“When energy routes are threatened, and trade corridors become contested, every economy in ASEAN feels the impact,” he said.
