The impact of oil prices on Malaysia's economy was studied. Different types of oil prices were tested against GDP, with domestic oil price showing the strongest effect. This means that changes in domestic oil price have a significant impact on the economy, both in the short and long term. The relationship between oil price changes and the economy is asymmetric, with decreases in oil price having a greater effect than increases. Policymakers may consider using domestic oil price as a tool to manage the economy in case of future oil price increases.