Malaysia Prime Minister Anwar Ibrahim said on Thursday that state energy firm Petronas would prioritise supplying Australia with excess fuel, as both countries move to strengthen energy security following disruptions linked to the Middle East conflict.
Anwar said he received the assurance from Petronas after discussions with Australian Prime Minister Anthony Albanese on boosting agricultural and fuel trade.
“The priority is for domestic requirements… but here is where negotiations among friends are critical,” he said at a press conference in Putrajaya.
Anwar noted that Malaysia requires mineral phosphates from Australia and could offer urea in exchange.
Albanese, who is on his third Southeast Asia stop after Singapore and Brunei, said Australia had secured an additional 100 million litres of diesel from shipments from Brunei and South Korea.
“This is the first of many expected shipments secured under the government’s new strategic reserve powers with the support of Export Finance Australia,” he said.
He added that Australia would honour existing contracts with Malaysia despite global disruptions.
Australia supplies about 20% of Malaysia’s natural gas imports and is also a key source of wheat, lamb and beef.
The leaders witnessed the signing of a memorandum of understanding on halal meat trade.
Albanese said the deal would boost Australia’s red meat exports while supporting Malaysia’s food security. Malaysia, a majority Muslim country, is widely recognised as a global leader in halal certification and processing.
Australia currently supplies nearly 60% of Malaysia’s wheat and 75% of its lamb and beef imports.
In a joint statement, both leaders expressed concern about the escalating Middle East conflict and its impact on energy supply chains, prices and flows of essential resources.
“We recognise the complementarity of our trade and economic partnership and the role our countries play in each other’s energy security.”
“Both countries serve as energy suppliers to one another, underpinning a mutually important energy security relationship,” they said.
They also committed to maintaining open, rules-based trade.
“We commit to promoting open and stable trade flows between our two countries, including essential energy supplies.”
“We will exchange views on energy trade related matters on a ‘no surprises’ basis, and deepen practical cooperation on energy security for both countries to achieve shared goals.”
Both countries pledged to improve supply chain resilience, support the energy transition and expand the use of renewable energy.
“Open and resilient global energy supplies remain deeply important to the security and prosperity of our peoples, and we will continue to consult on developments that may affect energy supply and markets.”
The statement highlighted the broader relationship between the two nations.
“Malaysia and Australia are deeply connected and share a longstanding friendship supported by our Comprehensive Strategic Partnership.”
“We have a common interest in ensuring our region’s prosperity, security, stability and economic future.”
“Our close relationship is grounded in strategic trust and a mutual commitment to open markets and rules based trade.”
The talks come as countries respond to global energy volatility driven by geopolitical tensions. Australia, which imports most of its refined fuel, has been working with regional partners to stabilise supply, while Malaysia continues to play a key role as an energy producer.
Experts say such bilateral arrangements help reduce risks from market disruptions by diversifying supply sources.
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