New Straits Times
In the article, Professor Datuk Norma Mansor, Director of Universiti Malaya’s Social Wellbeing Research Centre, highlights the volatile future of fuel costs in Malaysia. She warns that global oil prices could potentially spike to between US$120 and US$150 per barrel due to geopolitical tensions. While such extreme peaks are often short-lived as other producers ramp up supply to stabilize the market, Mansor emphasizes that a prolonged conflict may force the Malaysian government to accelerate fuel subsidy rationalization or adjust pricing policies within the next one to two years.
Mansor describes the situation as a "double-edged sword" for the nation’s economy. On one hand, as an energy exporter, Malaysia benefits from increased government revenue and higher contributions from PETRONAS, which can temporarily bolster the trade balance. On the other hand, the cost of maintaining domestic subsidies becomes a massive financial burden. This drain on resources limits "fiscal space," potentially diverting essential funds away from critical sectors such as education, healthcare, and social protection. Additionally, she notes that high energy prices will inevitably inflate operating costs for businesses, particularly those in transport-heavy industries like logistics, manufacturing, and agriculture, further impacting the broader economy
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