10/03/2026

BIZ & FINANCE TUESDAY | MAR 10, 2026

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Malaysia in ‘reasonable position’ amid oil price spike

performance of pub lic listed compa nies. The initiative seeks to encour age stronger value creation among companies while in creasing market visibility for high quality firms. Another key focus of CMP 2026 2030 is expanding access to the capital market to ensure broader participation among Malaysians. Faiz said this includes improving retail investor access to capital market products, reassessing product suitability and costs, and enhancing financial literacy to support long-term wealth creation. The masterplan will also strengthen the pipeline of market ready companies by improving access to financing for mid-tier companies and micro, small and medium enterprises, with some eventually progressing towards public listings. Beyond market participation, the capital market is also expected to play a key role in financing Malaysia’s sustainability transition. According to Faiz, Malaysia’s energy transition from fossil fuels to renewable energy will require an estimated RM1.2 trillion in investments.The capital market will therefore focus on mobilising both private and concessional capital to fund climate mitigation, transition and adaptation initiatives. “This includes supporting projects that may not traditionally be bankable but are essential for the country’s long-term resilience.” The masterplan also seeks to strengthen Malaysia’s position as a regional capital market hub. Drawing on initiatives developed under the Asean Capital Markets Forum, the roadmap will encourage the development of exchange traded funds with a stronger Asean focus and promote greater cross border investment flows. It will also aim to attract foreign companies to list and issue bonds or sukuk in Malaysia, while expanding the base with more long-term and institutional investors. Faiz said Malaysia’s strong standing in Islamic finance will continue to underpin the develop ment of the capital market. The Islamic capital market remains a key competitive advantage for Malaysia, providing globally competitive investment offerings while embedding principles aligned with Maqasid al-Shariah . At the same time, regulatory and governance excellence will remain central to the capital market’s development. Faiz said the SC will focus on ensuring that regulations remain efficient and responsive, with fewer unnecessary rules, faster time-to-market for new products and reduced friction for market participants. Investor protection will remain a priority to ensure fair treatment and maintain confidence in the market. - By DEEPALAKSHMI MANICKAM participation in capital market from page 13 Move to expand Malaysians’

o Amir Hamzah says situation stable for now, key priority is to ensure supply remains secure

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

challenging global environment,” he said at the Second Asean Banking and Finance Summit 2026 yesterday. On the Johor–Singapore Special Economic Zone (JS-SEZ), Mohd Shahar said the initiative is designed to deepen supply chain integration and strengthen cross-border invest ment flows between Malaysia and Singapore. He noted that in the first nine months of 2025, projects linked to the JS-SEZ accounted for 75% of Johor’s total investment volume, reinforcing the state’s position as a key global investment destination. “As we move through 2026, our focus has shifted decisively from planning to full-scale imple mentation. With the ministry finalising the JS-SEZ Investment Blueprint and Masterplan, the financial sector now has a clear roadmap to support high-value industrial clusters and critical cross border infrastructure,” he said. Mohd Shahar stressed that the success of the JS-SEZ must be disruption to the domestic market. While prices could continue to climb, supply conditions remain manageable, Amir Hamzah said. “Prices may trend higher, but from a supply standpoint, we are in a comfortable position. The same applies to oil, so we do not foresee any disruptions to the market at this point.” Amir Hamzah reiterated that the government intends to keep the retail price of RON95 petrol at RM1.99 per litre for the time being. “As Prime Minister Datuk Seri Anwar Ibrahim has said, we will continue to maintain the RON95 price at RM1.99 as we still have the capacity to do so at this stage. He also indicated that the government will try to hold the price at that level for at least the next two months, after which we will reassess the situation.” Malaysia’s balanced oil and gas supply position, together with a strong economic starting point this year, gives the country some buffer against external shocks, Amir Hamzah said. “But if this turns into a very prolonged crisis, then we will review the situation at that point. The key thing to remember is that Malaysia’s economy started the year on a very strong footing.” He added that the economic outlook for the first quarter is expected to remain positive, supported by momentum carried over from last year. “I think we will see a good first quarter because of the tailwinds from

economic growth is expected to remain steady at around 4.0% to 4.5% in 2026 despite global uncertainties, supported by resilient domestic consumption, continued investments in infrastructure and industrial projects, the expansion of the digital economy, and a recovery in tourism ahead of Visit Malaysia 2026. Deputy Economy Minister Datuk Indera Mohd Shahar Abdullah ( pic ) said the country entered 2026 on a solid footing, with the economy expanding 5.2% in 2025, surpassing earlier projections. Economic momentum streng thened towards the end of last year, with growth accelerating to 6.3% in the fourth quarter of 2025 – the fastest pace in about three years. Inflation has remained manage able at around 1.5% to 2%, while the labour market continues to show strength, with unemployment hovering at roughly 2.9%. “These indicators reflect an economy that remains resilient despite a KUALA LUMPUR: Malaysia remains in a relatively comfortable position as a net energy exporter despite the recent surge in oil prices triggered by escalating tensions involving the United States, Iran and the wider Middle East. Finance Minister II Datuk Seri Amir Hamzah Azizan said the growing conflict in the region could tighten global oil supply and push prices higher. “Today, Brent crude crossed US$115 per barrel. But at the moment, we are in a reasonable position,” he told reporters at the Second Asean Banking and Finance Summit organised by the KSI Strategic Institute for Asia Pacific yesterday. He noted that Malaysia’s status as a net energy exporter means that higher oil prices can also bring positive spillovers to the domestic economy. “We must remember that Malaysia is a net energy exporter, so higher oil prices also translate into positive effects for the economy.” However, Amir Hamzah said it is still too early to say whether stronger oil prices could lead to a higher dividend from Petroliam Nasional Bhd to the government. “This is still early days. The key priority for us is to ensure supply remains secure.” He added that Malaysia’s oil and gas supply situation remains stable for now, with no immediate signs of

Amir Hamzah speaking at the Second Asean Banking and Finance Summit organised by the KSI Strategic Institute for Asia Pacific yesterday.

time, the situation will ease, and that will gradually remove some of the pressure.” The duration of the conflict will ultimately determine how much it affects borrowing costs and inflation, Amir Hamzah said. “The key question is how long this conflict will last. We all hope for a quick resolution so the economic transmission will not be too deep or prolonged. For now, the country is managing the situation well.”

last year. Hopefully, if cooler heads prevail and we reach a diplomatic solution, then we should be able to manage this situation well,” the minister said. Amir Hamzah said the government hopes the Middle East conflict will eventually be resolved through diplomacy to avoid prolonged economic pressure. “We all hope the crisis in the Middle East will find a fair resolution in the not too-distant future. Hopefully, over

Economic growth in 2026 to remain steady at 4.0-4.5% despite global volatility: Deputy minister KUALA LUMPUR: Malaysia’s

into global value chains. He said the Johor Talent Development Council will play a central role in this effort by spear heading upskilling initiatives to build a high-income workforce. “By aligning our local talent with the needs of the SEZ, we can reduce reliance on low-skilled foreign labour and ensure the JS-SEZ becomes a sustainable engine of national prosperity,” he added. The summit, organised by the Asean Economic Club, World Digital Chamber, KSI Strategic Institute for Asia Pacific, the Economic Club of Kuala Lumpur and the Asean Business Club, carried the theme “Navigating Banking in a New Geo-economic Era – Enhancing Trust, Technology, Talent, Transformation.” Finance Minister II Datuk Seri Amir Hamzah Azizan delivered the opening keynote, highlighting how Malaysia’s economy and financial institutions can strengthen resilience amid rising geopolitical and geoeconomic challenges. - By HAYATUN RAZAK

inclusive. Under the 13th Malaysia Plan, the government is prioritising local supply chain integration and technology transfer to ensure small and medium enterprises are not sidelined but are instead integrated