In a special address tonight, Prime Minister Anwar Ibrahim said the purpose of this initiative is to save fuel and ensure a sustainable supply of energy for the country.

“Further details will be announced later. At the same time, I want to stress that the government is taking steps to cushion the impact of the global energy crisis through initiatives to support the people,” he said.

He had previously advised the private sector to also allow WFH arrangements for certain employees.

Anwar, who is also finance minister, reiterated that the Treasury would be spending RM4 billion a month to absorb the surge in crude oil prices as a result of the Strait of Hormuz’s closure.

“This is no small feat,” he said, adding that the subsidy was to protect Malaysians.

“However, our ability (to absorb these costs) is surely limited. Look at the experience of other countries.”

Nevertheless, Anwar said the government is working to ensure the security of Malaysia’s energy supply, including by diversifying the nation’s oil and gas import source countries.

The prime minister added that from his conversations with the leaders of Iran, Gulf nations as well as Indonesian president Prabowo Subianto, they were all expecting the fallout from the Middle East conflict to worsen.

“They all stated that they expected the situation to get worse before recovery can begin, and that will surely take much longer.

“This would surely affect the global supply chain, especially in the energy sector, and Malaysia is not exempted. We should be thankful that we entered this phase with a relatively more stable economy, allowing us to maintain the subsidised RON95 price at RM1.99 per litre.

“But this does not mean we can be comfortable … We must accept that these are unprecedented times. If the situation worsens, we must act accordingly,” said Anwar.