HORMUZ TENSIONS: WAKE UP CALL TO STRENGTHEN MALAYSIA'S ENERGY RESILIENCE

By Samantha Tan Chiew Tieng

PUTRAJAYA,  April 1 (Bernama) -- The closure of the Strait of Hormuz amid the US-Iran conflict should be viewed as a test of Malaysia’s energy resilience and an opportunity to accelerate reforms, rather than a cause for public alarm, energy experts say.

Director of the Solar Energy Research Institute (SERI) at Universiti Kebangsaan Malaysia (UKM), Prof Dr Norasikin Ahmad Ludin, said the situation underscores that energy security is no longer solely about fuel prices, but about ensuring a continuous supply amid global geopolitical uncertainties.

“The ability to purchase fuel without a guaranteed supply can lead to black markets, disruption of public services, and most critically, a crisis of public trust in the government,” she told Bernama.

She stressed that Malaysia’s energy security strategy must be implemented in phases, covering short-, medium- and long-term measures to strengthen the national energy system.

In the short term, Norasikin said the government should prioritise stabilising the domestic energy system, including extending the operation of high-efficiency coal plants as a backup source and optimising technology to improve fuel efficiency.

The use of artificial intelligence (AI) in logistics and Intelligent Traffic Systems (ITS), she added, can reduce fuel wastage and enhance supply chain efficiency.

Financial strategies, such as hedging against oil and liquefied natural gas (LNG) imports, are also crucial for mitigating price shocks that could affect the country’s fiscal position, she added.

Over the medium term, Norasikin emphasised the need to accelerate the development of domestic energy resources and strengthen regional energy integration to reduce dependence on imports.

Key measures include expanding the ASEAN power grid, increasing the adoption of B30 and B40 biodiesel, and diversifying liquefied natural gas (LNG import sources to countries such as Australia and Papua New Guinea.

Looking ahead, she highlighted that investments in emerging technologies, such as Small Modular Reactors (SMRs), green hydrogen and the electric vehicle battery ecosystem, will be vital to ensuring long-term energy stability and sustainability.

She also called for electricity market reforms, including the adoption of cost-reflective tariffs, to attract greater investment in renewable energy.

Norasikin further stressed that clear and consistent public communication is vital for managing any energy crisis and maintaining public confidence, adding that the government should also prepare contingency plans for priority-based fuel distribution in the event of supply disruptions.

“In facing these challenges, calm, discipline, and unity are essential to ensure national stability. Transparent communication is key to preventing panic and unnecessary hoarding that could worsen the situation,” she said.

Meanwhile, Prof Dr Zainal Abidin Sanusi, a lecturer in the Department of Political Science and Civil Studies at the International Islamic University Malaysia (IIUM), said the evolving global geopolitical landscape requires Malaysia to shift from passive neutrality to “active neutrality”, a more proactive diplomatic stance to safeguard trade and energy interests.

“Active neutrality means Malaysia must play a more strategic and proactive role in international diplomacy, strengthening ties with multiple trading partners and regional powers without over-reliance on any single bloc,” he said.

He added that tensions in the Strait of Hormuz should prompt a reassessment of Malaysia’s energy supply chain and accelerate efforts toward long-term self-reliance.

Key priorities include expanding domestic refining capacity, developing strategic petroleum reserves, and diversifying trade routes to minimise disruption risks, he said.

Zainal Abidin also noted that Malaysia can leverage its position within ASEAN to enhance regional cooperation in energy security and maritime logistics, thereby strengthening collective resilience against global uncertainties.

“The situation in the Strait of Hormuz should be seen as a strategic warning for Malaysia to reinforce its energy system and economic diplomacy. This is not about panic, but about preparedness and leadership in safeguarding economic sovereignty,” he said.

-- BERNAMA