KUALA LUMPUR – Surging global oil prices affect not only oil-importing nations but also producers like Malaysia, Malaysian Investment Development Authority (Mida) chairman Tengku Datuk Seri Zafrul Abdul Aziz said.
“Although many assume that oil producers like Malaysia would reap large profits with oil prices rising, the situation is more complex in reality,” he explained, as quoted by Bernama.
Tengku Zafrul outlined three key ways higher oil prices influence the Malaysian economy.
“First, the prices of goods may increase. When transportation costs rise, the prices of imported goods arriving in Malaysia can also go up. Goods produced domestically can also be affected because many raw materials and components come from abroad,” he said in a video posted on the X platform today.
The second effect, he noted, is the potential slowdown of the global economy.
“When oil prices increase, business costs rise. Some companies reduce production and there are also those that postpone investments. When the global economy slows, demand for Malaysian exports can also be affected,” Tengku Zafrul said.
The third point, he added, is that the impact of rising oil prices varies by country.
“About 80 per cent of countries in the world are oil importers, so for most countries, high oil prices actually put pressure on their economies,” he said.
For Malaysia, the outcome is mixed. While higher crude prices boost government revenue from the oil sector, the country simultaneously faces elevated subsidy costs, Tengku Zafrul concluded. – March 13, 2026