Prime Minister Datuk Seri Anwar Ibrahim emphasized Malaysia’s balanced approach in economic diplomacy, highlighting national interests such as energy security during a speech at the Ministry of Natural Resources and Environmental Sustainability assembly on May 4, 2026 [1].
Anwar detailed Malaysia’s reciprocal trade relationship with Australia, noting the country imports phosphate for fertilizer production and exports urea in return. "We import phosphate, we export urea… that is why in my discussions with the Prime Minister of Australia, Anthony Albanese, who was here two weeks ago, he asked for urea and I said that is possible provided he supplies phosphate," he said [1].
The prime minister added that Malaysia will supply oil to Australia only if there is a surplus but has no confirmed plans to sell oil to the Philippines [1].
Malaysia maintains ongoing economic cooperation with major partners such as China and the United States despite geopolitical differences. Anwar acknowledged the U.S. is Malaysia’s top trading partner and investor but criticized certain U.S. foreign policies. "Do we agree with its foreign policy? No. Do we agree with its actions in attacking Iran? No. Do we agree with it allowing the killing of children and women in Gaza? No," he said [1].
Anwar stressed Malaysia’s commitment to ASEAN centrality and independence in foreign relations. "We can trade, but we will not allow others to dictate our policies. If we dismantle or overhaul these policies, it could create domestic political tensions that we cannot control. So there are limits," he said [1].
He emphasized the importance of a pragmatic approach internationally to prevent disruption of foreign investment inflows, warning, "If we confront everything, new investments will be affected." Malaysia’s economy remains strong in high-value sectors such as electrical and electronics and artificial intelligence [1].
Two weeks prior to Anwar’s speech, Australian Prime Minister Anthony Albanese visited Malaysia and discussed the trade of phosphate and urea [1].
Anwar’s remarks reflect Malaysia’s drive to secure key resources while maintaining stable trade relations and protecting sovereign policies amid geopolitical complexities.