Impact of a prolonged war on export sector

Malaysia’s exports will do well in the near to mid-term but the risk of continued inflation might lead to tightening policies, which will slow down world growth, said Fortress Capital Asset Management Sdn Bhd CEO Thomas Yong.(pic)

WHILE the economic outlook for exports remain positive, the escalation of war in Ukraine is likely to negatively impact the world economy, supply chains as well as prices and inflation.

Russia and Ukraine are important producers and exporters of oil and gas as well as grains; Ukraine has half of the world’s neon gas, which is required in the manufacture of semiconductor chips.