Positioning Malaysia within the Global Energy Landscape
Malaysia ― Southeast Asia’s second largest oil and gas producer and the world’s second largest exporter of liquefied natural gas (LNG) ― is located along the seaborne energy trade channel that binds together the Indian and Pacific oceans. Yet rapidly increasing energy use has led to a sharp rise in Malaysia’s dependence on oil imports and a decline in the surplus of natural gas for export. Under these circumstances, the government of Prime Minister Najib Razak has embarked on an ambitious effort to transform Malaysia into a major maritime energy hub and revitalize the oil and gas (O&G) sector. This essay discusses the major steps that Malaysia has taken in pursuit of these goals and the ways in which Malaysia-Gulf Arab energy relations have changed as a consequence.