Malaysia to Introduce Work From Home For Government Workers From April 15 |
ASEAN Beat | Economy | Southeast Asia
Malaysia to Introduce Work From Home For Government Workers From April 15
Despite the advantages it enjoys as a net oil exporter, Prime Minister Anwar Ibrahim said that the country cannot afford to get “too comfortable.”
An oil and gas terminal in Sabah, Malaysia.
Malaysia will begin ordering government workers to work from home later this month as the country seeks to bring down energy costs in the midst of the current global oil supply crisis.
In a video announcement late yesterday, Prime Minister Anwar Ibrahim said that the policy will take effect on April 15 and will apply to both the public sector and government-linked companies, the state news agency Bernama reported.
“The aim is to reduce fuel consumption and ensure the sustainability of energy supply,” Anwar said.
Since February 28, the Iran war has led to the effective closure of the Strait of Hormuz, the passage for around a fifth of global oil and liquefied natural gas (LNG). This has caused negative ripple effects across the world, particularly in Asia, which is heavily dependent on imports of oil and LNG from the Gulf.
While Malaysia is a net exporter of energy – one of two in Southeast Asia – it nonetheless remains exposed to shifts in the global oil markets. The reason for this is that Malaysia chooses to export its own high-quality light sweet crude oil, which commands a higher price internationally, and to import cheaper heavy crude oil, which it has the capacity to refine domestically.
That said, the country is in a relatively advantageous position. Earlier this week, Abdul Rasheed Ghaffour, the governor of the central bank, said that Malaysia’s status as a net energy exporter and fiscal reforms undertaken last year would likely provide some buffer against the war’s economic impact.
Malaysia has pledged to maintain its fuel subsidies in order to cushion consumers from the worst price shocks, and seems set to do so for the foreseeable future. Abdul Rasheed said that the government will spend around 4 billion ringgit (just under $1 billion) per month to maintain subsidies and other price supports, including a fixed price for RON95 transport fuel and cash assistance for some diesel vehicle operators. Unsubsidised diesel prices have increased four times since the start of the war on February 28, rising to 6.02 ringgit ($1.49).
The fact that Malaysia is belatedly introducing work-from-home measures, something that has already been done to varying extents in Thailand, the Philippines, Vietnam, and Indonesia, is a sign that it envisions a protracted conflict.
Anwar said that despite Malaysia’s advantages, the country could not afford to be “complacent.”
“Any society, whether a family or a nation, that becomes too comfortable and takes matters lightly risks facing greater challenges,” he said. “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 said that the state energy firm Petronas would seek to diversify energy sources in order to safeguard the country’s energy supply. Last week, the Malaysian leader also announced that it had negotiated safe passage through the Strait of Hormuz for Malaysian vessels and oil tankers.
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Malaysia will begin ordering government workers to work from home later this month as the country seeks to bring down energy costs in the midst of the current global oil supply crisis.
In a video announcement late yesterday, Prime Minister Anwar Ibrahim said that the policy will take effect on April 15 and will apply to both the public sector and government-linked companies, the state news agency Bernama reported.
“The aim is to reduce fuel consumption and ensure the sustainability of energy supply,” Anwar said.
Since February 28, the Iran war has led to the effective closure of the Strait of Hormuz, the passage for around a fifth of global oil and liquefied natural gas (LNG). This has caused negative ripple effects across the world, particularly in Asia, which is heavily dependent on imports of oil and LNG from the Gulf.
While Malaysia is a net exporter of energy – one of two in Southeast Asia – it nonetheless remains exposed to shifts in the global oil markets. The reason for this is that Malaysia chooses to export its own high-quality light sweet crude oil, which commands a higher price internationally, and to import cheaper heavy crude oil, which it has the capacity to refine domestically.
That said, the country is in a relatively advantageous position. Earlier this week, Abdul Rasheed Ghaffour, the governor of the central bank, said that Malaysia’s status as a net energy exporter and fiscal reforms undertaken last year would likely provide some buffer against the war’s economic impact.
Malaysia has pledged to maintain its fuel subsidies in order to cushion consumers from the worst price shocks, and seems set to do so for the foreseeable future. Abdul Rasheed said that the government will spend around 4 billion ringgit (just under $1 billion) per month to maintain subsidies and other price supports, including a fixed price for RON95 transport fuel and cash assistance for some diesel vehicle operators. Unsubsidised diesel prices have increased four times since the start of the war on February 28, rising to 6.02 ringgit ($1.49).
The fact that Malaysia is belatedly introducing work-from-home measures, something that has already been done to varying extents in Thailand, the Philippines, Vietnam, and Indonesia, is a sign that it envisions a protracted conflict.
Anwar said that despite Malaysia’s advantages, the country could not afford to be “complacent.”
“Any society, whether a family or a nation, that becomes too comfortable and takes matters lightly risks facing greater challenges,” he said. “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 said that the state energy firm Petronas would seek to diversify energy sources in order to safeguard the country’s energy supply. Last week, the Malaysian leader also announced that it had negotiated safe passage through the Strait of Hormuz for Malaysian vessels and oil tankers.
Sebastian Strangio is Southeast Asia editor at The Diplomat.
U.S.-Israel war on Iran