KUALA LUMPUR, April 18 — The government is studying a proposal to create strategic petroleum reserves as part of the country’s long-term energy security planning, following global supply concerns. 

Deputy Economy Minister Datuk Mohd Shahar Abdullah said the proposal was among the matters the government was discussing as it assessed long-term preparedness following the supply disruption that closed the strategic Strait of Hormuz route for 48 days. 

“The matter related to strategic reserves is indeed being looked at by the government, especially in assessing long-term needs following the crisis that has occurred,” he said on Bernama TV’s Ruang Bicara programme titled “Krisis Tenaga Global: Ekonomi Teruji” today. 

He also commented on the Strait of Hormuz, which handles about 20 per cent of the world’s oil trade, as the strategic route has now reopened after United States President Donald Trump and the Iranian Foreign Minister confirmed that the strait was reopened to commercial shipping. 

Mohd Shahar said the reopening of the route would not lead to immediate stabilisation of oil prices due to damage to refinery infrastructure in the Middle East. 

“Although the route has been reopened, the recovery process will take time as the refinery and production facilities will need between four months and six months to return to full operation,” he said. 

He said the disruption also exposed structural weaknesses in Malaysia’s energy landscape, particularly the increasing reliance on petroleum product imports. 

“Malaysia, which was previously a net exporter, has now become a net importer due to declining domestic production and increasing consumption, with demand estimated at around 800,000 barrels per day compared to production of around 400,000 barrels per day. 

“This supply gap makes us more vulnerable to external shocks, and long-term measures such as strategic reserves and diversification of supply sources need to be given serious attention,” he said. 

He also commented on the Department of Statistics Malaysia’s announcement today that the Malaysian economy is projected to grow by 5.3 per cent in the first quarter of 2026, based on preliminary estimates, reflecting resilient economic fundamentals.

“This growth will increase the confidence of the international community, especially industry players and investors, in Malaysia as a strategic location to explore investment opportunities,” he said. — Bernama