KUALA LUMPUR, June 9 (Xinhua) -- The global energy crisis goes beyond oil prices and will be a broader physical disruption that could gradually affect households through rising cost of living, according to a Malaysian official.

This photo taken on March 30, 2026 shows a night view of a street in Cairo, Egypt. (Photo: Xinhua)

The impact would likely be felt in stages, beginning with fuel and logistics costs before spreading to petrochemical feedstocks, plastics, fertilizers, manufacturing and construction, Mohd Hassan Marican, chairman of the Crisis Management Task Force of the National Economic Action Council, told Bernama.

While Malaysia is in a relatively stronger position than many countries due to its established oil and gas ecosystem, domestic refining capacity, and experienced industry players and institutions like Petronas, which can play a stabilizing role during periods of disruption, Malaysia is not immune to external disruptions as it remains exposed to external shocks as an open economy, Mohd Hassan said.

He warned that an exclusive focus on fuel prices risks underestimating the scale of the disruption, as its effects will gradually extend across various sectors of the economy if it continues.

"Treating it purely as an oil price issue is a very common misconception," he said, adding that it is fundamentally a physical supply crisis, noting that in such situations, financial resources alone cannot resolve the issue if the supply is disrupted.

While Malaysia has strong fundamentals and institutional strength to weather these challenges, he stressed that managing the crisis requires national discipline and coordination across government, industry and the public. "This is not a challenge any single institution can manage alone, as it requires a whole-of-nation approach," he said.

Mohd Hassan said the government faces a delicate balancing act in protecting the people while maintaining long-term fiscal sustainability. He said subsidies and targeted support measures remain important in the short term to cushion households and businesses from the impact of inflation, logistics costs and the broader cost of living.

He cautioned that prolonged subsidy expenditure, if global energy prices continue to rise for an extended period, could carry fiscal consequences for other national priorities, including healthcare, education, infrastructure and economic development.

Many countries, including Malaysia, are gradually shifting towards more targeted subsidy mechanisms rather than broad-based blanket subsidies to improve efficiency and reduce leakages, he noted.

Mohd Hassan added that government priorities remained focused on maintaining national stability, securing vital supply lines, shielding vulnerable communities, and ensuring that the country's critical economic sectors continue to run smoothly.