Kuala Lumpur: Malaysian Prime Minister Anwar Ibrahim has expressed significant concerns regarding the potential closure of the Strait of Hormuz due to escalating tensions in the Middle East. The strait plays a crucial role in the export of oil and liquefied natural gas (LNG). Despite these concerns, Ibrahim emphasized that the current dispute does not necessarily impact global oil pricing mechanisms.
According to Kuwait News Agency, Ibrahim's statements came after his meeting with Organization of the Petroleum Exporting Countries (OPEC) Secretary General Haitham Al-Ghais and other industry leaders. The discussions took place during the opening day of the Energy Asia Conference 2025 in Kuala Lumpur, held from June 16 to 18. Malaysian Foreign Minister Mohamad Hasan also stated that Malaysia plans to urge Iran to keep the strait open, highlighting that its closure could disrupt supply chains and increase global energy prices.
During his keynote address, Ibrahim stressed the importance of a just approach to Asia's energy transition. He criticized the immediate abandonment of fossil fuels, given that they currently account for about 80 percent of global energy supply. He called for a clear financing framework to attract renewable energy investments, pointing out that Southeast Asia receives only 2 percent of global energy funding. Ibrahim also highlighted Malaysia's initiatives, such as the corporate renewable-supply scheme, third-party access model, and green-finance mechanisms.
In addition, Ibrahim announced significant investments in Malaysia by major companies, including France's Total, Italy's Eni, and Saudi Aramco. Several important agreements are expected to be signed during the conference.
Charlotte Wolff-Bye, Petronas vice-president and chief sustainability officer, also spoke at the conference, underscoring Asia's pivotal role in the global energy transition. She emphasized the need for cooperation across sectors and borders and noted that Petronas is working to balance local production with imports to meet increasing regional demand.
The "Powering Asia" conference has brought together over 180 speakers and 4,000 participants, including CEOs and leaders from the oil, energy, technology, and finance sectors. The event aims to develop a comprehensive roadmap for investment and technology adoption, featuring a closed-door session for industry leaders.