KUALA LUMPUR: A coordinated government-industry response is needed to address the growing impact of the Iran-US-Israel conflict and the disruptions around the Strait of Hormuz on Malaysia’s manufacturing exports and maritime trade, says the Federation of Malaysian Manufacturing (FMM).
President Jacob Lee Chor Kok proposed that the government establish an export crisis response task force, an ad hoc government-industry mechanism that could be activated when trade disruptions arise to address operational challenges faced by exporters and shippers.
“Recent international events highlight the need for such a mechanism as ongoing tensions in the Middle East are affecting major maritime routes.
“A coordinated response platform would enable timely engagement between government agencies and industry to assess developments, share information, and respond quickly when such disruptions occur,” he said in a statement yesterday.
Lee said major shipping lines had introduced emergency freight increases for cargo moving to and from Gulf ports, while war-risk insurance premiums had also risen sharply.
Citing Port Klang as an example, he said it is experiencing congestion which could worsen if shipping routes are further disrupted.
Malaysia’s manufacturing sector faces direct exposure to disruptions in global shipping routes with more than 90% of the country’s trade transported by sea.
“Stable and reliable maritime logistics remain critical to sustain export performance and industrial production, and recent developments in the conflict already showed rising freight costs and operational disruptions,” he added.
Based on industry experience during the Red Sea crisis in 2024, freight rates on affected routes rose threefold within weeks, while vessel diversions extended transit times by up to two weeks. —Bernama
