Govt working with stakeholders to draft national energy policy

Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said the policy's aim is to enhance economic resilience and energy supply assurance, achieve social fairness and justice, and ensure environmental sustainability.

He said energy security, which is defined by the International Energy Agency as the uninterrupted availability of energy sources at affordable prices, has many aspects.

"This includes long-term energy security to supply energy in line with economic developments and environmental sustainability.

"Meanwhile, short-term energy security refers to the energy system's ability to react promptly to sudden changes in the supply-demand balance," he said in response to a question from Wong Hon Wai (DAP-Bukit Bendera) in the Dewan Rakyat today on Malaysia's energy security situation during the global energy crisis as well as the government's plan to improve it.

Mustapa said that at this time, Malaysia does not have an energy supply problem as experienced in Europe, China and India.

The crises in those markets, he said, were due to, among others, increases in natural gas demand ahead of the winter season along with the surge in natural gas and coal prices.

"As an example, coal prices, which were around US$80 per tonne in early 2021, have reached about US$200 per tonne this month," he said. (US$1=RM4.17)

According to him, the government is continuously studying the oil subsidy rationalisation issue as well as taking into account the consumers' interest to reduce the people's burden.

"For the purpose of having engagement on subsidy rationalisation, we will forward (the proposal) to the Finance Ministry for consideration. The same also for the National Energy Policy, which has been under government consideration for almost two years.

"There are several quite serious matters that need to be decided. We will arrange an engagement session (with the opposition)," he said.

According to Mustapa, Malaysia's energy supply comes from natural gas (41 per cent), crude oil (25.8 per cent), coal (22.3 per cent), and hydro as well as other renewable energy sources (6.2 per cent).