Kuala Lumpur (VNA) – The Malaysian government is studying a proposal to establish a strategic petroleum reserve as part of the country’s long-term energy security plan, amid concerns over global supply disruptions.
The proposal is among the issues being discussed by the government as it assesses long-term preparedness following supply disruptions caused by the closure of the strategic Strait of Hormuz for 48 days, Deputy Economy Minister Shahar Abdullah said in an interview with Bernama TV.
Shahar noted that the reopening of the Strait of Hormuz will not lead to the immediate stabilisation of oil prices due to damage to refinery infrastructure in the Middle East.
He added that although the strait has reopened, the recovery process will take time, as refinery and production facilities may need between four and six months to return to full operation.
The disruption also exposed structural weaknesses in Malaysia’s energy landscape, particularly its increasing reliance on imported petroleum products.
Malaysia, which was previously a net exporter, has now become a net importer due to declining domestic production and rising consumption, with demand estimated at around 800,000 barrels per day compared to production of about 400,000 barrels per day.
The minister emphasised that this supply gap makes Malaysia more vulnerable to external shocks, and that long-term measures such as building strategic reserves and diversifying supply sources should be given serious attention./.
