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KUALA LUMPUR: The ongoing geopolitical tensions in the Middle East are having a short-term impact on Malaysia, particularly in terms of economic stability, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Amir Hamzah said the current crisis, which saw a series of retaliatory attacks in conflict zones, has caused crude oil prices to spike over a short period.
“Oil prices surge sharply as a result of these attacks, but we saw prices coming down again with negotiations.
“So the impact right now is short-term. We understand that efforts to maintain peace are ongoing, and Malaysia continues to support initiatives aimed at sustaining peace in the region,” he said after launching the Budget 2025 Initiative by SME Bank.
He emphasised that global peace remains the most critical issue currently, other than economic concerns.
In related developments, Brent crude oil prices rose by over three per cent last week before stabilising following early reports of peace talks by several major powers.
On RON95 fuel subsidies, Amir Hamzah said the government intends to implement targeted RON95 subsidies this year.
“But if we are to proceed, it must be done properly, just like with diesel — we need to ensure that the mechanism is right. We are still designing the mechanism and it will be discussed with the Cabinet.
“However, in principle, Prime Minister Datuk Seri Anwar Ibrahim has said we will not impose a high burden. We want to ensure that the majority of people will not be affected by this RON95 subsidy adjustment,” he said.
— BERNAMA
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