Malaysia has emerged as a crucial source of fuel for the Philippines as Manila turned to its Southeast Asian neighbor for additional supplies during the Middle East oil crisis, helping push bilateral trade between the two countries to $4.21 billion in the first five months of 2026.

Trade between the Philippines and Malaysia grew 9.5 percent year-on-year from January to May, keeping both countries on course toward their $10-billion bilateral trade target, Malaysian Foreign Minister Mohamad Bin Haji Hasan said during the 9th Philippines-Malaysia Joint Commission Meeting, held 17 to18 August 2026 in Manila

The increase was partly supported by higher Philippine purchases of refined petroleum products. Imports from Malaysia reached about $703 million from January to August, including $80 million in crisis-related purchases made between March and June.

Emergency buying particularly evident in April

Emergency buying was particularly evident in April, when Philippine diesel imports from Malaysia increased by about 329,000 barrels, worth $116.8 million. The purchases were around $35 million above normal levels.

The development highlights Malaysia’s growing role in helping the Philippines secure fuel supplies as disruptions in the Middle East expose the country’s vulnerability to external energy shocks.

The two countries are also looking to expand economic ties beyond traditional trade. Hasan cited opportunities in digital connectivity and artificial intelligence, while Philippine Foreign Affairs Secretary Ma. Theresa P. Lazaro emphasized stronger regional trade and resilience.

The meeting also covered agriculture, food security, labor migration and defense cooperation.

Malaysia’s role in Mindanao peace process

Malaysia likewise reaffirmed its role in the Mindanao peace process and pledged support for the Philippines’ 2026 ASEAN chairship. Kuala Lumpur will host the next joint commission meeting in 2027.