KUALA LUMPUR: The Malaysian International Chamber of Commerce and Industry (MICCI) has underscored the need for clear and timely communication from the government to industry stakeholders amid potential disruptions at key West Asian maritime routes.
In a statement today, MICCI president Christina Tee said this was aimed at enabling better planning and coordination.
"There are signs of rising freight rates and insurance premiums, though the impact varies across industries, and these increases are feeding through the value chain, putting pressure on margins and business cash flow.
"While companies may absorb part of these costs in the short term, this is not sustainable, and some degree of cost pass-through to consumers is unavoidable,” she said.
The chamber said it is closely monitoring developments surrounding potential disruptions at the Bab el-Mandeb, a critical maritime route linking Asia with Europe via the Suez Canal, amid continued uncertainty following the imposition of a US naval blockade in the Strait of Hormuz.
While Malaysia’s trade with the European Union accounted for approximately 7.5 per cent of total trade as of January 2026, MICCI emphasised that the issue is less about trade share and more about the importance of the shipping corridor itself.
"Any disruption to this route would have broader implications for global shipping flows, including vessel availability, freight costs and supply chain reliability.
"For businesses with direct exposure to European markets, particularly in sectors such as electrical and electronic, manufacturing, commodities and petroleum-related products, the impact is likely to be more immediate,” said MICCI.
The chamber added that rerouting vessels via longer passages such as the Cape of Good Hope could result in delays of between 10 and 14 days, requiring companies to adjust production planning, inventory management and delivery commitments.
It said developments at key maritime chokepoints such as the Bab el-Mandeb warrant close coordination between government and industry.
"Continued government-to-government engagement will be important to help ensure the safe and uninterrupted passage of goods through these critical routes.
"As the Ministry of Investment, Trade and Industry continues its assessment, MICCI has also submitted recommendations to the National Economic Action Council, calling for a coordinated, data-driven and transparent approach to assess the broader economic impact of the crisis,” it said. - Bernama
