Diversification Of Supply Sources Key To Strengthening Malaysia's Supply Resilience
KUALA LUMPUR, July 23 (Bernama) -- Measures to diversify supply sources and assess the need for strategic stockpiles are essential to extend Malaysia’s supply resilience beyond the current operational period, according to the Ministry of Economy.
The ministry said that, in this regard, the government's contingency plan to ensure the continuity of oil supplies beyond August 2026 includes diversifying petroleum supply sources and optimising domestic fuel supplies through biodiesel.
The plan also includes efforts to strengthen leakage control, enforcement, and data-driven monitoring, the ministry said in a written reply published on the parliament website Thursday.
"The government wishes to clarify that Malaysia's crude oil and petroleum product supplies are managed through a supply ecosystem involving various oil companies to ensure a continuous domestic supply," it said.
In addition, the Ministry of Economy stated that the government is comprehensively reviewing various models and approaches to strengthen the resilience of the country's petroleum supply.
The ministry said this includes assessing fiscal implications, operational requirements, governance structures, and taking into account the experiences and best practices of other countries. "This assessment also considers the balance between the desired level of supply resilience, cost-effectiveness, and the suitability of these measures within the country's market structure and capacity," it said.
Meanwhile, it said that the commitments and guarantees under the recently concluded 20-year long-term fuel supply agreement (covering petrol, diesel, crude oil, and gas) with the Russian Federation are aligned with the objectives of the National Energy Transition Roadmap (NETR). "The long-term supply assurance from Russia serves as a domestic safety net to minimise the risk of supply chain disruptions and volatility in global market prices resulting from geopolitical crises," it added.
From the perspective of reducing dependence on fossil fuel imports, the government's pragmatic foreign policy strategy, including simultaneous cooperation with Turkmenistan to secure access to gas field blocks, is aimed at diversifying supply sources.
-- BERNAMA
