Retail Fuel Prices on the Rise?

 

The price of RON97 and unsubsidised RON95 petrol was increased by 60 sen nationwide from 26 March 2026, while the price of diesel in West Malaysia went up by 80 sen. The finance ministry said the price of RON97 will be fixed at RM5.15 per litre from RM4.55 per litre currently. Meanwhile, the price of unsubsidised RON95 fuel will be fixed at RM3.87 per litre, up from RM3.27. The price of diesel in West Malaysia will be fixed at RM5.52 per litre, up from RM4.72 per litre.

 

 

Subsidised RON95 petrol under the BUDI95 programme will remain at RM1.99 per litre, while diesel in Sabah, Sarawak and Labuan stays at RM2.15 per litre. These prices are effective until April 1. 

The ministry said the prolonged conflict in West Asia has driven global crude oil prices up by more than 40%, surpassing US$100 per barrel, thereby increasing the risk of disruptions to global oil supply. 

The measures include maintaining the price for subsidised RON95 while retaining the price of RM2.15 per litre for diesel used by public transport and land logistics. 

The main impact on consumers will be indirect. Transportation of goods will be become more expensive. Some have warned prices could rise by up to 50%. Businesses may face a sharp increase in costs. FMM estimates production costs could rise by 6% to 10%. Several sectors are impacted – form good to construction. That’s not good news to a fixed wage employee. 

Reference: 

RON97, unsubsidised RON95 rise 60 sen, diesel up 80 sen in West Malaysia, FMT Reports, FMT, 25 March 2026

 

Malaysia’s Tourism Hit by Fuel Shock?

 

Malaysia’s tourism sector is bracing for a sharp jump in travel costs, with tour package prices expected to climb as much as 50 per cent. Surging fuel prices impact transport and operating expenses. Malaysian Inbound Tourism Association (MITA) president Mint Leong said the increase comes as the Middle East conflict disrupts travel flows and drives up global energy prices, compounding pressure on an industry already facing cancellations and weaker demand. If the situation (in West Asia) persists, tour package prices could rise by 30 to 50 per cent. 

Tourism sector felt the impact from early March, almost as soon as the Iran war broke out.  An estimated 2,800 tour packages were cancelled in the first week of the conflict.  Beyond cancellations, the sharp rise in diesel prices is emerging as a key pressure point, given that transport operators rely heavily on diesel, and so are facing surging operating costs.

 

Source: https://en.wikipedia.org

Renting a tour bus previously cost between RM1,040 (S$333.70) and RM1,205 a day when diesel cost RM3.04 a litre. The cost has now risen to between RM1,900 and RM2,200 – a nearly 83 per cent increase, with Malaysia’s diesel prices now at RM5.52 a litre. The spike is squeezing margins across the tourism value chain, from transport providers to hotels and F&B operators. Because tour packages are typically contracted months in advance at fixed prices, operators are unable to pass on the higher costs. Tourist buses, vans and ferries have been excluded from the national diesel subsidy since 2024, leaving those operators particularly exposed to price volatility. 

In the meantime, operators are exploring alternative strategies to mitigate disruptions, including rerouting travellers through China and tapping into regional demand. In 2025, Malaysia welcomed 42.2 million visitors, 11.2 per cent more than the year before. Tourism receipts came in at RM110.6 billion.  Building on this momentum, the country hopes to clock 47 million foreign arrivals and a record RM147.1 billion in receipts for the Visit Malaysia 2026 campaign. Industry groups say the combined impact of rising costs and falling demand is beginning to strain cash flow. 

Malaysia’s tourism sector relies heavily on advance bookings from long-haul travellers, particularly from Europe, North America and the Middle East, said Wong. However, geopolitical tensions and higher airfares have led to postponements, leaving gaps in expected revenue. The crisis is also exposing longer-term structural challenges within the industry.

Tourism operators affected, hotels will be impacted, restaurants will have less customers and all-related enterprise will go down. Has there been an urgency to address issues for tourism and the many other sectors? I don’t see it yet! The MOF and the Economy Ministry need to draw-up a “survival” plan soon! 

Reference:

Malaysia tourism hit by fuel shock; tour prices may jump 50%,  Tan Ai Leng, The Business Times, 30 March 2026

Malaysia’s Automotive Industry in a Flux?

 

Malaysia’s automotive industry in now in a state of flux after it was reported the ministry of investment, trade and industry (MITI) imposed new requirements for BYD’s CKD local assembly plans, which the Chinese conglomerate did not agree to. According to The Edge, the government set a RM200,000 floor price as well as a target of 80% of its production volume to be made up of exports. 

This has caused progress on the Tanjong Malim plant, due to be operational in the second half of the year, to ground to a halt. At the centre of the dispute are, of course, Proton and Perodua, the protection of which was the reason behind these new requirements.

 

Source: https://en.wikipedia.org

MITI’s purported RM200,000 floor price for CKD EVs is poor policy at best. Every BYD model is priced below that mark; even the most expensive Sealion 7 Performance AWD slides under it with RM200 to spare. Only the company’s premium Denza marque has cars that cost more than that. 

MITI could argue that the floor price for CKD models is significantly below that of CBU EVs, which is now RM250,000. But if you’re BYD, why would you invest millions, if not billions of ringgit on an assembly plant. It only gets worse when you consider that other brands like Tesla and Chery seem to get preferential treatment. Not only has Tesla been able to continue selling cars at 2025 prices, but it has even managed to introduce a new version of the Model 3, the Standard, at under RM150,000. 

Will the RM200,000 floor price also applies to brands like Xpeng, or does this only apply to BYD? And will Zeekr which, like Proton, Geely owns a stake in – and is set to utilise Proton’s own Tanjong Malim plant – get special treatment? 

And what about companies that have already begun their CKD operations? Companies like Leapmotor and MG, the latter of which has only just opened the order books for the locally-assembled S5 SUV, complete with estimated pricing (obviously well below RM200,000). What about Wuling, which has already started deliveries of the TQ Wuling Bingo? 

We then come to the other requirement – that BYD has to export as much as 80% of its Malaysian production overseas. Last year, BYD sold 14,407 vehicles in Malaysia, and if it wants to achieve a reasonable return on its plant investment, it will no doubt want to sell more. But even with a conservative target of 15,000 annual sales, it will then have to export 60,000 units to other markets. Even Proton struggles to export a tenth of that figure, while BMW sent 11,400 vehicles from its plant in Kulim, Kedah to markets such as Thailand and the Philippines last year. 

The spectre of protectionism has loomed over the Malaysian automotive industry ever since the idea of a national carmaker was mooted in the 1980s. Still, the government has long sought to distance itself from such accusations. 

The new requirements were put in place to safeguard Proton and Perodua – claimed to include over 50% of local content in their cars – as well as the jobs of some 700,000 people within the wider local automotive ecosystem. But that argument falls on its face upon the slightest scrutiny. It may be true that most of Proton’s combustion-engined cars have over 50% local content, but the same cannot be said of its eMas EVs and plug-in hybrids. Just one model out of the three – the eMas 7 – is currently assembled in Malaysia, and even this is classified as a semi knocked down (SKD) product, not a completely knocked down (CKD) one. That means the car is simply assembled in Malaysia without much in the way in the local content, and right now, Proton’s much-vaunted EV plant does not even have a paint station. 

Proton and Geely’s advantage are compounded by the fact that their eMas EV models are all able to be sold at under RM100,000. This includes the eMas 5, which is still fully imported and benefits from a special CKD bridging programme, allowing Proton to sell thousands of CBU units at CKD-level pricing, instead of the mere hundreds that other companies are limited to.

Plus, Proton is free from any real expectations of exports. While the eMas 7 is technically exported to small markets such as Nepal and Mauritius, Proton currently exports cars that are made in China, not Malaysia (although this will soon change). Also, Proton is shut out from major markets such as Thailand and Indonesia, because Geely operates its own plants there – contrary to past promises. 

As for Perodua, it promises that its new QV-E will have 50% of local content early this year, and up to 70% a full four years from now, in 2030. That’s better than most Protons, but it’s still a long way off from the company’s usual standard of around 95%. 

Proton and Perodua do not operate in a vacuum. They are part of a massive global ecosystem currently undergoing a seismic shift, and even experienced players are finding it tough out there. Killing off their rivals at home may improve sales in the short term, but it only seeks to make them less competitive outside of Malaysia. Why do companies require 35-40 years of protection? Because they are incompetent? Because they exploit the market as a duopoly? Because they are pure capitalist? 

Those 700,000 workers that MITI wants to protect, they all benefit from a vibrant, thriving economy that feeds off of investment both local and foreign. 

Perhaps most important is the perception that Malaysia is portraying to the world with these new requirements. It shows that the government is willing to forgo foreign investment in service of its own agenda, even at a huge cost to itself. It also shows that this country may not be such a reliable partner. 

Reference:

BYD CKD EV saga – where does the auto industry stand with MITI’s RM200k floor price, export criteria? Jonathan Lee, March 30, 2026, paultan.org

Core Christian Days

 

Recently, I met several people who were interested to understand the essentials of Good Friday and Easter. This short article is an attempt to explain briefly Ash Wednesday, Maundy Thursday, Good Friday, Easter and Christmas. 

The Christian faith is an invitation to have a relationship with God through Jesus Christ. It is not an “earning salvation” religion but by pure grace – an unmerited favour of God to rescue us (Eph. 2:8-9). No one can come to Christ unless the Holy Spirit convicts them – and that too from repentance of one’s heart and believing that Jesus Christ is Lord. 

The five key days represented below form the core narrative of the Christian faith: Ash Wednesday begins a 40-day, reflective Lenten season (repentance, fasting), while Maundy Thursday (Last Supper/servant leadership), Good Friday (crucifixion/sacrifice), Easter (resurrection/victory) form the “Triduum” (three days) climaxing in the celebration of new life, and Christmas (birth of Jesus Christ). 

Ash Wednesday (Starts Lent): Christians receive ashes on their foreheads to mark the beginning of a 40-day period of fasting, repentance, and self-reflection in preparation for Easter. It symbolizes mortality ("dust to dust") and the need for spiritual renewal. 

Maundy Thursday (Last Supper): Commemorates Jesus’ last supper with his disciples before his betrayal. Significance includes Jesus washing his disciples' feet to teach humility, and the institution of the Holy Communion/Eucharist [Maundy is from the Latin word mandatum or command – “Love one another as I have loved you (Jn 15:12)]. 

Good Friday (Crucifixion): A solemn day focusing on Jesus’ crucifixion, suffering, and death on the cross. It is considered "good" because it represents the sacrifice Jesus made to pay for the sins of humanity, leading to salvation. 

Easter (Resurrection): The celebration of Jesus rising from the dead on the third day after his crucifixion. It is the most significant Christian celebration, marking victory over death, sin, and the promise of eternal life. 

Christmas (Incarnation/Birth): The celebration of Christmas is the incarnation of God on earth. Jesus was born to save mankind.

To know more and explore the meaning of life, please do the Alpha Course. 

 

Family of Five Forced to Live in a Car!

 

In one of the most social distress stories to emerge in Malaysia this year, were five members of a single family, including an infant, found living inside their car in Seremban. Their ordeal has sparked national debate about poverty, housing affordability, and the weakness of social safety nets in the country’s growing urban centres. It underscores structural issues in housing, urbanization, and economic inequality that are now forcing even families to treat vehicles as shelter. 

Police and welfare officers who encountered the family noted they had resorted to the vehicle because they could no longer afford rent and had no access to alternative shelter. Their car served as a bedroom, kitchen, and refuge. This is not an isolated incident but part of a worrying pattern where Malaysia’s social systems fail to prevent vulnerable families from falling through the cracks.  

Source: https://nomadlife.wiki/Car_camping

Malaysia does not publish regular nationwide counts of homelessness, but independent estimates suggest that the issue is far from negligible. In the capital Kuala Lumpur alone, there were estimated to be up to 2,000 people without stable shelter. Research on homelessness in Malaysia indicates that unemployment, low earnings, and rising housing costs are key drivers pushing people into unstable living situations. 

Malaysia’s cost of living has risen steadily. Data from the Department of Statistics Malaysia shows that the average household expenditure in Negeri Sembilan including food, utilities, and housing is among the lower end nationally at about RM3,987 per month. Nevertheless, this still places pressure on lower‑income families, especially those affected by job loss or unpredictable. 

Despite policy efforts, housing affordability remains a core challenge. Academic reviews show that rapidly rising property prices outpace incomes for many Malaysians, particularly the bottom 40% (B40) and middle 40% (M40) segments. Median house prices in urban and suburban areas often exceed what typical households can afford without significant debt. The costs of buying or renting a home in areas like Seremban and Nilai have climbed alongside broader urbanization. Research on Seremban 2 shows that urban expansion has increased demand for housing, yet many low‑cost housing schemes lag behind this demand trend. 

National poverty statistics show a slight decline in absolute poverty rates in recent years, from 6.6% downwards in 2024, yet lingering urban poverty persists even as extreme poverty wanes. (Department of Statistics Malaysia)

 

Experts identify several intersecting causes:

·             Unemployment and underemployment. Jobs in lower‑wage sectors are often unstable, with little to no social protection.

·             Rapid urbanization. Urban expansion increases housing demand faster than supply of affordable units.

·             High housing costs. Without adequate low‑cost housing, families can be priced out and forced into irregular shelter solutions.

·             Social safety net gaps. Support from welfare programs may not reach all those in need or may be limited in scope. 

Academic research on homelessness in Malaysia aligns with these findings, identifying poor and irregular income, lack of affordable housing, and family breakdown as top contributors. 

Living in a car is not just uncomfortable it jeopardizes health, education, and psychological well‑being, especially for children. Medical studies on homeless populations worldwide show that people without stable housing are at elevated risk of infectious disease, chronic health conditions, and mental stress due to poor access to medical care and unstable living conditions. These issues likely apply to Malaysian contexts as well, especially in tropical climates where humidity, heat, and condensation make cars an unsafe habitat for long durations. 

The phenomenon of families living in vehicles is not unique to Malaysia. In high‑cost cities worldwide from Los Angeles to London rising housing costs have pushed some families to seek refuge in cars or converted vans. What makes the Seremban case particularly alarming is that it happened outside of a global mega‑city, reflecting deeper structural issues even in smaller urban centres. 

This story should catalyse recalibration of housing policy and social support frameworks, not just in Negeri Sembilan but across Malaysia’s urban and suburban regions.

 

What do you think? 

Reference:

Family of Five Forced to Live in Car in Seremban Reveals Hidden Homelessness Crisis, AM World, Newswav, 19 March 2026

 

Are Malaysia’s Homes “Seriously Unaffordable?

 

In 2025, the median house price in Kuala Lumpur and Selangor was RM560,000 (US$142,300) and RM470,000 respectively, a 7 per cent and 4.4 per cent increase from the year before, according to official data. This is a spike from the 1.6 per cent and 0.4 per cent increase in 2024. The Malaysian federal government has defined affordable homes as having a maximum price of RM300,000. 

According to official data, Malaysia’s homes have been “seriously unaffordable” since 2014, when the country’s median house price was almost five times its median annual household income. This house price-to-income ratio, or median multiple, is a method recommended by the World Bank and United Nations to gauge housing affordability. Home prices are considered affordable when they are three times or below that of household income.

                                                             Source: https://insights.mudah.my

A decade on in 2024, homes in Malaysia have become slightly more affordable, when the median multiple dropped from 4.9 to 4.2, though this score is still in the “seriously unaffordable” range. Analysts say homes remain unaffordable due to slow income growth, longer loan tenures, and rising costs for developers. These developers in turn price homes higher for larger profit margins. 

Recognising that homes on the open market can be unaffordable for some Malaysians, the federal and state governments have introduced several housing schemes to help the bottom 40 per cent and middle 40 per cent income earners. These schemes have eligibility criteria that include citizenship and household income, and offer homes capped at around RM300,000 with hybrid financing models, including the possibility of rent-to-own. 

The federal government’s schemes include PR1MA, where a government-linked company builds affordable homes across the country either directly or through voluntary joint ventures with private developers. Prices range from RM150,000 to more than RM500,000, depending on location and project.

Residensi Wilayah is another federal government affordable housing scheme that is designed for Malaysians working in the federal territories - Kuala Lumpur, Putrajaya and Labuan. Prices range from RM200,000 to more than RM400,000. The federal government also provides low-cost housing, like this block of flats in Kerinchi, Kuala Lumpur, under its Program Perumahan Rakyat (PPR) scheme. State governments, which have vested power over their land, have their own affordable housing schemes. 

In 2025, homes priced below RM300,000 made up the largest portion (37.7 per cent) of unsold completed units. Homes priced above RM500,001 made up the second-largest portion (34.7 per cent) of unsold completed units, suggesting that more expensive units were not exactly being snapped up either. 

The housing minister has said that he has always advised developers to conduct feasibility studies and reduce building costs through technology like industrialised building systems (IBS). IBS is a construction technique in Malaysia where components are manufactured in a controlled environment either on- or off-site, before being transported and assembled with minimal site work. 

The other is financing cost. Banks do have long-dated tenures but if wages are low, prospects for new buyers to get financing is low. And if wages remain “sticky” upward, then sales are going to be hampered and home purchases by young people will be impacted. The way forward is to be innovative on building new homes, creating connections (rail/roads) to new development areas and providing incentives and support for first time buyers. We are not Singapore or Hong Kong limited by land. Solutions can be found if we work on it seriously enough. 

Reference:

IN FOCUS: Why have Malaysia’s homes remained ‘seriously unaffordable’ for a decade and counting? Aqil Haziq Mahmud, CNA, 11 March 2026

Oil: Prices, Products and the Future

 

From 12 March to 18 March, RON97 and unsubsidised RON95 petrol prices rose by 60 sen per litre, while diesel prices in Peninsular Malaysia rose by 80 sen per litre. Although subsidised RON95 remains capped at RM1.99 per litre, the government's bill for the BUDI95 subsidy will climb. If the ongoing Middle East conflict drags on, the cost could run into billions of ringgit.

 

Image via FMT

 Even though Malaysia exports more oil and gas products than it imports overall, global oil prices can still influence domestic fuel prices because the country is a net importer of refined petroleum products, which are the fuels used in vehicles. Every USD10 per barrel increase in global prices raises the annual fuel subsidy bill by more than RM10 billion, creating substantial fiscal pressure. Higher oil prices boost petroleum-related government revenue, the net effect could be marginally negative, forcing the government to either absorb the cost or adjust retail prices upward. We are better placed than many other nations and we need to be astute in our subsidies to the Rakyat.

Image via Dialog Group (Facebook)

The data from DOSM separates Malaysia's oil and gas trade into three main categories: 

·                  Crude petroleum and condensate

·                  Refined petroleum products

·                  Liquefied natural gas (LNG)

Crude petroleum and condensates are raw hydrocarbons extracted from underground before any processing takes place.

These raw materials are then sent to refineries, where they are turned into finished fuels. Those finished fuels fall under refined petroleum products, which include everyday fuels such as:

·                  RON95 petrol

·                  RON97 petrol

·                  Diesel

Meanwhile, LNG comes from natural gas, which is cooled to extremely low temperatures until it becomes liquid.

Because Malaysia produces high-grade crude oil, countries with refineries that can process light crude efficiently — such as Japan, South Korea, and Australia — are natural buyers. Their refineries can convert Malaysian crude into higher yields of valuable products such as gasoline and jet fuel. Neighbouring countries like Thailand and Singapore are also frequent buyers due to shorter shipping distances and well-established logistics networks, said Yeah. 

So, the impact on our trade balance for petroleum is less pronounced than a country wholly dependent on imports like India, China or Thailand. We are blessed with sweet crude and net effect could even be positive if we produce/extract more fossil fuels to balance-out any imports of crude oil. 

The other option for the Government is to accelerate use of electric vehicles, more solar for residential houses, renewables in the overall generation mix. We need to be intentional even if conditions improve (i.e. crude oil prices drop). To do so, the Government has to draw-up a short-term (6-12 months) plan to reduce use of fossil fuels for transport, industry or homes. We have a longer-term plan to 2050, but that is too far forward to have an impact today. Incentives removed may need to be reintroduced and more aggressive efforts made to wean away from fossil fuel. 

Reference:

Explained: Why does Malaysia import oil & gas despite producing its own? Says.com, 12 March 2026