The four stories shaping Malaysia today.
Thursday, 12 March 2026
Four stories that shaped Wednesday — and what to watch next
1. Anwar Holds the Line on RON95
Following Wednesday’s Cabinet meeting, Prime Minister Datuk Seri Anwar Ibrahim confirmed that subsidised RON95 petrol under the Budi95 scheme will remain at RM1.99 per litre, despite rising global oil prices.
Calling the decision “difficult,” Anwar said PETRONAS data indicates Malaysia has sufficient petroleum supply to cushion the current volatility until May.
Meanwhile, unsubsidised RON95 jumped 60 sen to RM3.27 per litre, while diesel in Peninsular Malaysia rose 80 sen to RM3.92 per litre.
What to watch:
The decision protects consumers ahead of Hari Raya, but it comes at a rising fiscal cost. The gap between subsidised and market fuel prices is widening rapidly. If Brent crude remains elevated, the pressure on the Treasury will intensify. The government has effectively signalled a two-month window — May is the real deadline.
2. Putrajaya Activates War-Economy Monitoring Committee
The government has activated a special committee chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan to monitor the economic fallout from the Iran conflict.
The committee will track oil price movements, inflation risks and supply disruptions, coordinating with the Economy Ministry and other agencies.
Separately, Deputy Prime Minister Datuk Seri Fadillah Yusof will lead a task force targeting diesel smuggling in Sabah and Sarawak, where price gaps with Peninsular Malaysia have long encouraged cross-border leakage.
What to watch:
This effectively forms Putrajaya’s economic command structure for managing an oil-shock scenario. Its early assessments will shape how aggressively the government responds if crude prices climb further.
3. BNM Holds OPR at 2.75% — Ringgit Remains Firm
Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 2.75%, saying Malaysia’s financial system remains resilient and markets continue to function in an orderly manner.
The central bank reiterated that the ringgit is market-determined and that it does not target any specific exchange rate level.
BNM said the economy faces global uncertainty from a position of strength, supported by steady domestic growth, moderate inflation and a stable financial sector.
What to watch:
The ringgit has been a regional outperformer, strengthening about 3% against the US dollar this year. BNM’s neutral stance preserves policy flexibility if oil-driven inflation begins to rise.
4. Cabinet Reviews Fiscal Position as Global Risks Rise
Prime Minister Anwar Ibrahim convened a special Cabinet meeting on Wednesday to assess Malaysia’s fiscal and financial position amid rapidly evolving global developments.
Separately, the government has reactivated enforcement efforts against subsidised goods smuggling, a recurring issue whenever the gap between subsidised and market prices widens.
What to watch:
Any adjustments to fuel subsidies, contingency spending or fiscal buffers could influence investor sentiment in the coming weeks. Further signals are expected following the government’s internal assessments.
Bottom Line
Malaysia is weathering the global oil shock better than many regional peers — the ringgit remains firm, subsidies are intact and supply is secured for now.
But the fiscal buffer is narrowing. The next six to eight weeks will be critical as policymakers balance fuel subsidies, inflation risks and fiscal sustainability ahead of the May supply window flagged by PETRONAS.