Malaysia will introduce a work-from-home policy for ministries, agencies, statutory bodies and government-linked companies starting from April 15 to conserve energy during the Middle East conflict, Prime Minister Anwar Ibrahim said.

His announcement late on Wednesday comes as the Southeast Asian nation starts to feel the impact of the Middle East war on global fuel supplies.

"The cabinet has agreed to the work-from-home policy. It aims to reduce fuel consumption and ensure a stable energy supply," Anwar said during a special briefing.

He said more updates would be announced soon.

Malaysia heavily subsidises fuel, with eligible citizens paying just 1.99 ringgit per litre of unleaded petrol.

But as global crude prices soar and Iran keeps the crucial Strait of Hormuz effectively closed, Anwar said the quota for subsidised fuel would be cut from 300 litres to 200 litres a month.

Unsubsidised fuel prices will continue to follow global market rates.

Foreign Minister Mohamad Hasan said last week that tankers belonging to Petronas, Sapura Energy and maritime firm MISC were awaiting clearance to safely navigate the strait.

Transport Minister Anthony Loke added the vessels would be exempt from any prospective tolls imposed by Iran, a measure Tehran has threatened.

"We are a friendly party. We have a good diplomatic relationship with the Iranian government," he said, expressing confidence that Iran would allow the ships to pass.

In a televised address last week, Anwar thanked Iranian President Masoud Pezeshkian for permitting Malaysian oil tankers and their crews to continue their voyage home. (AFP)


Edited by Tony Sabine