Malaysia orders government staff to work from home to save fuel

Malaysia will require employees in the public sector and at government-linked companies to work remotely starting April 15, a policy Prime Minister Anwar Ibrahim unveiled in a video address. The plan is aimed at lowering fuel consumption and protecting energy supplies during a global crunch triggered by the effective closure of the Strait of Hormuz on February 28.

The Strait of Hormuz is a major chokepoint for energy trade, carrying about one-fifth of the world’s oil and liquefied natural gas. Disruptions there have constrained shipments to Asia, tightening supply and lifting prices

Malaysia is a net energy exporter in Southeast Asia yet remains exposed to price swings. The country exports higher-quality light sweet crude, which fetches a premium, and imports cheaper heavy crude that local refineries can process. Export revenues benefit from high prices, while imported feedstock and refined product markets still influence domestic costs.

“The aim is to reduce fuel consumption and ensure the sustainability of energy supply. Any society, whether a family or a nation, that becomes too comfortable and takes matters lightly risks facing greater challenges. We must accept the reality that the situation is not as usual. If circumstances are worrying, then we must respond accordingly and adhere to our plans”, Anwar stated.

Financial supports remain in place to cushion households and businesses from higher energy costs. Central bank governor Abdul Rasheed Ghaffour put monthly subsidies and price supports at about 4 billion ringgit (just under $1 billion), including a fixed price for RON95 gasoline and cash assistance for some diesel vehicle operators. Unsubsidized diesel has been increased four times since February 28, reaching 6.02 ringgit ($1.49) per liter.

Authorities have tasked state energy firm Petronas with diversifying energy sources to protect supply security. Anwar noted that Malaysia recently arranged safe passage for Malaysian vessels and oil tankers through the Strait of Hormuz.

Thailand, the Philippines, Vietnam, and Indonesia have issued varying degrees of work-from-home guidance in recent weeks to save fuel as transport costs rise.

Abdul Rasheed indicated that Malaysia’s net exporter status and fiscal reforms completed last year should help buffer the economy, and the government has pledged to maintain fuel subsidies for the time being.