WoodMac says populist Mahathir's policies create uncertainty; gas demand soft

WOOD Mackenzie analyst Edi Saputra says the recent election of populist nonagenarian Dr Mahathir Mohamad will have an impact on Malaysia’s energy landscape through initiatives such as the scrapping of the nation’s goods and services tax, re-introduction of a petrol subsidy for targeted groups, and possibly higher royalty payments for the oil and gas producing states such as Sabah and Sarawak.

WoodMac says populist Mahathir's policies create uncertainty; gas demand soft WoodMac says populist Mahathir's policies create uncertainty; gas demand soft WoodMac says populist Mahathir's policies create uncertainty; gas demand soft WoodMac says populist Mahathir's policies create uncertainty; gas demand soft WoodMac says populist Mahathir's policies create uncertainty; gas demand soft

Gas’ place in major Malay sector to drop by 12% to 2023

While more clarity is needed, Mahathir's subsidy maintenance and cost of living reductions could, Saputra says, "pose uncertainties to the continuity of the current gas price reform initiatives". 
 
However, Peninsular Malaysia, home to capital Kuala Lumpur, will see continued soft gas demand for the next five years as demand for gas-fired power drops 12% to make up 27% of the area's electricity demand, thanks to an increase in cheap coal.
 
This prediction is in line with Washington think tank, the Centre for Strategic and International Studies' outlook that sees strong coal use across Southeast Asia's major economies, coupled with an increase in renewables, but little rise in gas use. 
 
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