Australia, Malaysia vow close cooperation on energy security

• Ibrahim says Malaysia engaging Arab, Iranian leaders 'to promote peace and amicable resolution to the conflict'

Australia and Malaysia have committed to working together to strengthen energy supply chain resilience and deepen regional cooperation, according to a joint statement issued on Thursday.

“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,” the statement said.

This came as Australian Prime Minister Anthony Albanese met with Malaysian Prime Minister Anwar Ibrahim in Putrajaya.

The statement said the two countries share "deep concern over the conflict in the Middle East, its escalation and the consequences for our region, including the impact on energy supply chains, prices and flows of essential energy supplies such as the oil and natural gas value chains."

Both countries act as energy suppliers to each other, underscoring a "mutually important" energy security relationship. They also affirmed their shared commitment to open, rules-based trade in energy products.

"We commit to promote open and stable trade flows between our two countries, including for 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," it said.

Malaysia and Australia also expressed commitment to cooperating to strengthen energy supply chain resilience, including by deepening regional cooperation, supporting energy transition and promoting renewable energy use.

Albanese said Australia has secured an additional 100 million liters of diesel from two shipments, from Brunei and South Korea. Australia consumed over 554,000 barrels per day in 2023.

“This is the first of many shipments secured under the government’s new strategic reserve powers, with the support from Export Finance Australia,” he said at a joint press conference with Anwar.

Albanese visited Brunei for two days before traveling to Malaysia.

Earlier, Australia released oil from its strategic reserves to cushion the impact of supply shortages, while Albanese also said that Australia and Brunei were working on “ways in which we can secure additional supplies, particularly of fertilizer, in return for, of course it goes back to Brunei as food.”

Anwar, for his part, highlighted Malaysia’s strong global ties, saying leaders in the Gulf and wider Arab world have “sought our views and our assistance to convey their concerns and their views to the Iranian leadership and I think we use that to promote peace and amicable resolution to the conflict.”

While reaffirming Malaysia’s commitment to freedom of navigation through key straits, he said that there are issues “that must be resolved,” noting that when a country is attacked and no security guarantees are given, its concerns “must also be addressed.”

“We also want guarantees from countries, big powers included, so to end animosity and attacks and even sanctions against other countries,” he said.