00:01In 1973, a global oil crisis shook the world, forcing Malaysia into a rethink of how it was
00:09to manage its energy resources. A war fought more than 5,000 kilometres away between Israel and a
00:16coalition of Arab states saw OPEC, the Organization of Arab Petroleum Exporting Countries, impose an
00:23oil embargo. Suddenly, oil prices quadruple, plunging economies worldwide into recession.
00:31At the time, Malaysia was pumping about 95,000 barrels of oil a day, mainly for export,
00:37since its low sulfur crude could fetch premium prices overseas. Meanwhile, local consumption
00:44stood at 85,000 barrels, largely imported from the Middle East and refined in Singapore.
00:50University of Malaya's Lam Chungwa says the country's leaders understood the risks,
00:55but also saw an opportunity. Then-Deputy Prime Minister Hussein An told parliament the crisis
01:01presented Malaysia with an incentive to build its own petroleum-based industries.
01:06According to Lam, Hussein said the government was actively cooperating with the private sector
01:11to seize this opportunity. As the crisis dragged on, Malaysia began to experience shortages in diesel
01:18and kerosene in 1974. But that year also marked a turning point for the country. It saw the birth of
01:26national oil and gas company Petronas. One year later, the national petroleum policy was drawn up,
01:33giving Malaysia control over its resources, allowing for the expansion of exploration,
01:38and laying the foundations for downstream industries. A master-planned commission from the renowned
01:44Japanese firm Sea Ito recommended diversifying into natural gas, refineries, fertilizer, and petrochemicals,
01:52shaping a more resilient energy system. Today, that resilience is being tested as Malaysia once again
01:59faces a global energy crisis. However, immediate concerns have been eased, with Petronas confirming it
02:06has sufficient fuel supply at its stations nationwide to last at least until end June. With Petronas holding
02:13the fort, Malaysia's current fuel reserves have remained at steady operational levels, despite the
02:18standoff in the Strait of Hormuz. Lam says Malaysia's response to the 1973 oil shock fundamentally changed
02:25its policy direction. What began as a crisis became the catalyst for a national energy strategy that
02:32continues to insulate the country today. Natasha Bust, FMT.
Comments