Malaysia Does Not Export Oil to Other ASEAN Countries as It Still Imports 400,000 Barrels a Day – MITI’s Johari

Why It Matters

The reliance on crude imports underscores Malaysia’s vulnerability to global price swings and limits its role as an energy supplier within ASEAN, while LNG exports become a critical buffer for the trade balance.

Key Takeaways

• Malaysia imports ~400,000 barrels of crude oil daily
• Net oil importer despite domestic production
• Remains net exporter of liquefied natural gas (LNG)
• Budi95 petrol price held at RM1.99 (~$0.44) per litre
• No ASEAN countries currently buying Malaysian crude

Pulse Analysis

Malaysia’s energy profile has shifted dramatically in recent years. While the nation still extracts crude domestically, it now imports roughly 400,000 barrels a day, making it a net oil importer rather than an exporter. This paradox reflects broader regional dynamics, where supply chain disruptions and geopolitical tensions have tightened global crude markets. For ASEAN partners, Malaysia’s inability to supply oil reduces regional diversification options and heightens reliance on traditional exporters such as Saudi Arabia and Russia.

Against this backdrop, Malaysia’s LNG sector emerges as a strategic counterbalance. The country continues to export significant volumes of liquefied natural gas, leveraging its offshore gas fields to generate foreign exchange and mitigate the crude oil deficit. LNG revenues not only support the national balance of payments but also provide a hedge against volatile oil prices, reinforcing Malaysia’s standing as a key gas supplier in the Asia‑Pacific corridor. This duality—importing crude while exporting gas—highlights the nuanced nature of its energy portfolio and informs investors about the country’s risk‑adjusted exposure.

Domestically, the government’s decision to maintain Budi95 petrol at RM1.99 per litre (approximately $0.44) signals a commitment to price stability amid the global fuel crisis. By subsidizing retail prices, authorities aim to cushion consumers from sudden cost spikes, preserving purchasing power and social stability. However, sustained subsidies could strain fiscal resources if import bills rise further. Policymakers must balance short‑term consumer relief with long‑term energy security, potentially accelerating diversification into renewables and enhancing strategic reserves to reduce future import dependence.