KUALA LUMPUR, April 3 -- The global oil shock triggered by the US-Israel war against Iran has exposed a fundamental weakness in Malaysia's economic structure: its overwhelming dependence on cars and subsidised fuel, according to environmental think tank RimbaWatch.

In a new analysis, the group argues that the crisis, which has caused Malaysia's monthly RON95 subsidy bill to skyrocket from RM700 million to a staggering RM4 billion, is a symptom of a much deeper structural vulnerability.

While the government has initiated work-from-home (WFH) for the public sector, RimbaWatch argues that a wider, mandated implementation is a powerful short-term tool to manage the fiscal bleed.

The think tank calculates that if just half of the Klang Vall...