Malaysia must accelerate a decisive shift towards more sustainable, diversified and cost-effective energy sources to ensure it is protected from global energy shocks and geopolitical tensions, Prime Minister Anwar Ibrahim said on Tuesday.

With the ongoing attacks launched against Iran by the United States and Israel having resulted in the destruction of energy infrastructure and disruption of the Strait of Hormuz, one of the most critical energy routes in the world, a policy of energy diversity and security could not be delayed any further, Anwar said in his keynote speech at the inaugural Kuala Lumpur-Ankara Dialogue 2026.

"These are not isolated risks. They point to a wider systemic shock, one that could further unsettle markets, disrupt supply chains, and strain economic stability across continents. For Malaysia, this means acknowledging that we are not immune to disruptions in global energy supply," he said.

"And in the long run, we must accelerate a decisive shift in our energy strategy, towards more sustainable, diversified, and cost effective sources. This is not merely an environmental necessity. It is a strategic imperative," he said.

Anwar also cautioned that the oil shocks of the 1970s, which triggered inflation and constrained growth, were not as serious as the challenges facing the world today. "Today, the risks are more profound and pernicious. Our economies are more integrated, more digitized, and far more dependent on uninterrupted flows than at any point in the past," he said.