25/03/2026

WEDNESDAY | MAR 25, 2026

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‘Reliance on artificially cheap fuel reaching breaking point’

PM calls for diplomacy, calm amid

Media reports indicate that, as of early February 2026, MACC had frozen 16 bank accounts holding RM10.2 million, along with another RM1 million in related corporate and individual accounts. Cash totalling over RM170,000 and valuables worth RM220,000 were also seized. In early March, MACC submitted investigation papers to the DPP with a recommendation to formally charge the officials. – By HARITH KAMAL West Asia crisis PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim has called for calm and diplomacy amid the ongoing West Asia crisis, emphasising Malaysia’s role in promoting peace and protecting civilians. In a post on his Facebook page, Anwar said he spoke with Indonesian President Prabowo Subianto yesterday, exchanging views on regional and international issues, including the Iran-Israel conflict. He said both leaders have agreed to arrange a meeting soon, with Anwar proposing a visit to Jakarta to further strengthen bilateral ties. “We shared perspectives on the Iran-Israel conflict and the importance of sustained diplomatic engagement. We jointly urged for peace.” Anwar said Malaysia would continue to support diplomatic efforts to de-escalate tensions, protect civilians and open meaningful avenues for a lasting resolution. In a separate call with New Zealand Prime Minister Christopher Luxon, he condemned military attacks on Iran and opposed unilateral actions that violate international law. He reiterated Malaysia’s call for an immediate ceasefire, civilian protection and a return to dialogue through diplomatic channels. Anwar also discussed the conflict’s impact on global energy security and economic stability, including rising fuel prices and pressures on the New Zealand economy. He welcomed the New Zealand government’s proactive steps to strengthen energy security and accelerate the transition to renewable sources. “At the same time, we reaffirm our commitment to continue strengthening the bilateral relationship under the Strategic Partnership framework, including in trade, investment and energy cooperation.” – BY HARITH KAMAL

underlying inflationary pressures, creating an artificially moderated inflation environment. “Inflation is not eliminated, but redistributed through imported goods and supply chains still exposed to global energy costs. Persistently low fuel prices also weaken incentives to improve efficiency or shift to alternative energy,” said Liew. “There is less incentive to adjust energy usage, invest in efficiency or transition towards alternative energy sources. Over time this can entrench structurally higher fuel consumption and delay necessary economic adjustments.” Asked what would shock Malaysians most if subsidies were cut tomorrow, Ferlito said it would not just be higher prices but also the realisation of how dependent society has become on cheap fuel. “The deeper shock would be structural – how much of household budgeting, commuting habits, business logistics and even political expectations have been built around artificially cheap energy.”

energy-saving technology.” He said the tipping point is reached when subsidies stop being a temporary cushion and instead lock the government into ever-rising spending, leaving less money for other essential areas. “Economically, that tipping point has already been reached long ago.” Ferlito said the government’s stance reflects political caution rather than economic boldness. Echoing concerns about long term distortions, Doris Liew, an economist specialising in Southeast Asian development, said Malaysia’s government-controlled fuel pricing system, while effective at easing inflation, carries hidden costs. “Fuel subsidies act as a stabilisation tool, smoothing inflation during periods of external price shocks,” she said, adding that controlled pump prices help contain cost-of-living pressures and business input costs in the short term. She said this stability is partly artificial. “Insulating domestic fuel prices from global market signals masks

o Sharp increase in subsidies from around RM700m to RM3.2b in less than a week not only unsustainable but also reflects deeper structural problem, says economist

Ű BY HARITH KAMAL newsdesk@thesundaily.com

prices hit about US$90 (RM355) per barrel, Malaysia could spend around RM23.8 billion on RON95 subsidies and this could climb to RM31.3 billion if prices reach US$110 (RM434). As of press time, oil is hovering around US$100 (RM394) per barrel. Ferlito warned that beyond fiscal strain, prolonged subsidies reshape behaviour in ways that hurt the economy. “When fuel is persistently underpriced consumers and firms treat cheap energy as normal rather than exceptional. “Over time, that weakens price discipline, delays efficiency improvements and discourages investment in public transport or

PETALING JAYA: A staggering jump in fuel subsidy spending is more than a fiscal anomaly – it is a flashing red warning that Malaysia’s long standing reliance on artificially cheap fuel may be reaching a breaking point, said an economist. Prime Minister Datuk Seri Anwar Ibrahim recently revealed that government fuel subsidies had surged from around RM700 million to RM3.2 billion in less than a week following a spike in global oil prices due to the Middle East conflict. Centre for Market Education CEO and economist Carmelo Ferlito said the sharp increase is not only unsustainable but also reflects a deeper structural problem. “Subsidies and anything that alters market prices are fundamentally wrong. Malaysia and other countries have built their economies around adjusted prices, creating a kind of dependency.” He warned that the longer such policies persist the more painful the eventual withdrawal would be. Ferlito said the figures highlight how quickly subsidy burdens could spiral when global oil prices rise, particularly amid geopolitical tensions such as the Strait of Hormuz crisis. “The figure is precisely the kind of warning sign that shows why blanket fuel subsidies are fiscally dangerous.” He said while Malaysia may absorb the surge temporarily such spending could not be sustained if high oil prices persist. He added that based on government estimates, if global oil PETALING JAYA: Two NGOs have called on the Malaysian Anti Corruption Commission (MACC) and the Attorney-General’s Chambers (AGC) to provide clarity on investigations into top officials of the Environment Department (DOE) over alleged corruption in e-waste management. MACC Chief Commissioner Tan Sri Azam Baki had said the MACC detained the department’s director general and deputy director-general

Ferlito said when fuel is persistently underpriced consumers and firms treat cheap energy as normal rather than exceptional. – AMIRUL SYAFIQ/THESUN

MACC urged to provide clarity on graft probe of DOE top officials

taken to prevent conflicts of interest or further abuse of power during the ongoing probe. “Regular updates must be provided to the public to reinforce confidence in Malaysia’s anti corruption and environmental protection institutions.” The probe reportedly stems from suspected systemic irregularities in the management of e-waste, which is critical to both environmental protection and public health.

“The MACC and AGC must disclose the current status of matters, including when the officials will be charged. “Allowing them to continue in office raises serious issues over evidence tampering and compromises prosecution efforts,” they said in a joint statement. The NGOs also urged the Natural Resources and Environmental Sustainability Ministry to clarify what administrative measures had been

after they voluntarily presented themselves at the commission’s Putrajaya headquarters on Jan 29. The NGOs pointed out that since then no further information had been made public, and it remains unclear whether the officials have been suspended while the investigation continues. Sahabat Alam Malaysia and the Centre to Combat Corruption and Cronyism have called for immediate transparency.

DPM extends appreciation to Civil Defence Force on 74th anniversary

KUALA LUMPUR: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has expressed his deep appreciation to the Malaysian Civil Defence Force. He described its personnel as

said he has personally witnessed the dedication of the force’s personnel on the ground, helping without much talk and carrying out their responsibilities with full discipline. – Bernama

seeking attention.” He said this in a post on his Facebook page in conjunction with the anniversary celebration. Ahmad Zahid, who is also Rural and Regional Development minister,

people need assistance, whether in disaster situations, emergencies or other unexpected crises. “Not all heroes stand in front of the camera. Some move quietly, appear when needed and leave without

heroes who are always ready to serve without expecting praise. In conjunction with the force’s 74th anniversary yesterday, he said it has proven its excellence as a force that remains on standby whenever the