A Reading of the Malaysian Government’s Position Towards the War Against Iran (2–3)

Dr Ahmed Abdelbagi
Malaysia’s energy sector constitutes the backbone of the country’s economic growth, and several sectors that depend on it make significant contributions to national output. For example, the manufacturing and labour sectors contribute 28 per cent and 25 per cent respectively. In addition, revenues from Malaysian crude oil exports account for 31 per cent of the money supply and 13 per cent of export value. Energy security, therefore, represents a central concern for Malaysia, even though achieving it remains difficult, as evidenced by the current war against Iran. Among the effects of this war on Malaysia are: higher fuel prices, because refined oil and its derivatives are imported from the United Arab Emirates, Saudi Arabia and Oman, which increases the fuel subsidy provided by the government for domestic consumption; a higher cost of living and rising inflation; adverse effects on the transport sector and supply chains; and erosion of the income earned from exporting Malaysia’s premium-grade crude oil. Even so, it is still too early to determine the impact of the war on Malaysia’s economic growth, and forecasts for 2026 have not yet changed. Perhaps the effects will become apparent over the longer term.
The official and popular Malaysian موقف تجاه the war on Iran
Malaysia’s stance on the war against Iran is not based on shifting geopolitical changes or a volatile foreign policy influenced by fluctuations in international relations. Rather, it is founded on the determinants of the country’s foreign policy, some of which were laid down more than sixty years ago. One of these determinants is attention to the Islamic dimension, particularly given that the country’s constitution, adopted after independence, states that Islam is the official religion of the country. Support for Islamic causes through foreign policy has therefore assumed growing importance for domestic reasons related to Malaysia’s Muslim majority, which regards Islam as its distinctive identity.
Malaysian-Iranian relations: an overview
The history of Malaysian-Iranian relations dates back to the sixteenth century, when some Iranian merchants settled and engaged in trade on the shores of the Sultanate of Malacca, established in 1400 AD (in what is now the state of Malacca). Some historians believe that Islam entered Malaysia through Malacca, which served as a trading centre on the Straits of Malacca, now linking the Indian and Pacific Oceans, through which 25 per cent of international trade passes.
Relations between Malaysia and Iran were strengthened in the modern era when the Shah of Iran at the time, Mohammad Reza Pahlavi, visited Malaysia in 1968 during the tenure of Tunku Abdul Rahman Putra Al-Haj, Malaysia’s first Prime Minister after independence (1957–1970). After the fall of the Shah’s regime, power passed to the Iranian Revolution led by Khomeini in 1979. The prime ministers who succeeded Tunku Abdul Rahman followed his approach to dealing with Iran. When Dr Mahathir Mohamad became Prime Minister in the 1980s, he entered into confrontation with the West, and Malaysia adopted the “Look East” policy and opened itself to South-South dialogue. At the height of the Iran-Iraq war, Iran sent two of its ministers to Malaysia to strengthen relations and to examine the “Look East” policy adopted by Malaysia. Since then, relations between the two countries have continued through mutual diplomatic representation, visits by senior officials, and ongoing cultural, commercial, political and social exchange. It should be noted, however, that some difficulties, such as the influence of the Iranian Revolution on some Malaysian Muslims and the surge of signs of Shiism among certain segments of Malaysian society, have marked relations between the two countries. Despite the small size of that group, the Malaysian authorities issued a fatwa in 1994 declaring the Shia to be a deviant group, and its activities in Malaysia have been banned ever since.
Trade relations between Malaysia and Iran
Trade relations between Malaysia and Iran are not particularly large. Iran ranks as Malaysia’s 67th trading partner and accounted for less than 1 per cent of Malaysia’s foreign trade in 2025. Malaysia’s exports to Iran also fell by 11 per cent, equivalent to 2.2 billion Malaysian ringgit. Malaysia exports palm oil, iron, rubber products, aluminium and organic chemicals to Iran, and imports food products and minerals from Iran. From the standpoint of commercial interests, this war therefore has no direct impact on Malaysia with regard to the import of energy and its derivatives. Rather, the effect would come from any closure of the Strait of Hormuz, because Malaysia imports oil and its derivatives from Middle Eastern countries. It should be noted that Iran allowed Malaysia to use the Strait of Hormuz, and nine Malaysian ships have recently passed through it.
Islam and Malaysian foreign relations
Because of certain internal political balances in Malaysia, Islam has become one of the pillars of its foreign policy, a policy first initiated by Malaysia’s first Prime Minister, Tunku Abdul Rahman, in the 1960s. He also served as Secretary-General of the Organisation of the Islamic Conference (now the Organisation of Islamic Cooperation). Malaysia has supported Islamic causes through the Organisation of Islamic Cooperation and in the corridors of the United Nations through ideas and intellectual contributions relating to the issues of Muslim peoples, such as the Palestinian cause, the Soviet occupation of Afghanistan, the conflict in Bosnia and Herzegovina, the Iran-Iraq war, and Muslim minorities in South-East Asia. This has strengthened the attachment of Malaysia’s Muslim population to the causes of Muslims, especially the Palestinian cause, as well as more recent issues such as the current war against Iran.
The Islamic dimension in Malaysia’s external relations became especially prominent during Dr Mahathir Mohamad’s premiership in the 1980s, when he declared in 1983 that the Non-Aligned Movement and the Commonwealth were no less important to Malaysia than the Islamic world. Dr Mahathir also sought to adopt an Islamisation line in his domestic and foreign policy in order to polish his image at home and abroad, satisfy the Malay ethnic group that constitutes the Muslim majority in Malaysia, preserve political and social stability among Muslims, and reduce the influence of the Islamic revival of the 1970s, which threatened Muslim governments with secular orientations in the Islamic world. In addition to containing the impact of that revival on Malaysia, Mahathir also sought to curb the influence of the Malaysian Islamic Party, which is closer to the Salafi movement, advocates the implementation of Islamic law in Malaysia, and refers to Malaysia as an Islamic state.
Islamic movements also played a role in supporting Dr Mahathir’s line. The largest of these movements was the Islamic Youth Movement (ABIM), which was headed in the 1970s by Anwar Ibrahim, the current Prime Minister, in addition to the support of the Islamic Welfare Organisation (PERKIM), founded by Tunku Abdul Rahman in 1960. Since then, support for Muslim causes around the world has become an essential factor in Malaysian elections, helping candidates win the support of Muslim voters. Consequently, all Malaysian prime ministers after Mahathir adopted Islamic slogans to win the favour of the Muslim majority. For example, Abdullah Badawi adopted the slogan of “Civilisational Islam”; after him, Najib Tun Razak adopted “Wasatiyyah Islam”; and after them, Anwar Ibrahim, the current Prime Minister of Malaysia, adopted the slogan “Madani Malaysia”.
To be continued…

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