JOHOR is taking proactive steps to mitigate the impact of geopolitical tensions which have disrupted supply chains, causing costs to rise.
State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said the issue was of significant concern to both the Federal and state governments, given Malaysia’s strong exposure to international trade.
Citing a special meeting between the Economy Ministry and state governments on April 13, he said the Middle East conflict had led to energy disruptions and pushed up operational costs including transport and logistics.
“This has placed pressure on the price and supply of production input.
“As a result, global economic growth is expected to slow, with Malaysia’s inflation rate for 2026 projected between 1.5% and 2.5%,” he said during the state assembly sitting at Bangunan Sultan Ismail in Kota Iskandar.
He was replying to Anuar Abd Manap (BN-Pemanis) who asked about assistance apart from Bantuan Kasih Johor to help people cope with rising fuel costs.
Lee said crude oil prices had risen significantly from US$69 per barrel in 2025 to US$142 per barrel in early April.
He said the crisis had driven up petroleum product prices, with actual delivered costs becoming higher when factoring in transportation and insurance.
“Transport costs nearly doubled to about US$370 per metric tonne as at March 30 compared to around US$205 on Feb 27, within just a month.
“Insurance premiums also surged 16 times from about US$125,000 to approximately US$2mil per shipment.”
The rising fuel cost, particularly petrol and diesel, he said, had direct impact on cost of living especially in terms of transportation and daily goods.
Lee said although fuel price was managed by the Federal Government, the state government had rolled out various initiatives to reduce people’s burden.
They include Bantuan Kasih Johor, which received a RM138mil allocation under its fourth phase this month, Bas Muafakat Johor initiative, and Rumah Mampu Milik Johor which aims to build 100,000 homes by 2030.
Johor was also introducing the Kampung Melayu Majidee food court pilot project this month, alongside the Kasih Johor voucher scheme, while stepping up enforcement to ensure fair pricing, he said.
“The state’s approach goes beyond direct financial aid.
“It also ensures access to more affordable transport, housing and essential goods.”
Lee said Johor’s measures were aligned with Federal initiatives including the nationwide Jualan Rahmah programme.
He added that the Federal Government had stressed the need for a structured approach, including involving government-linked companies in efforts to lower operational costs such as rental and supply chain expenses.
“Johor implemented similar approaches earlier by observing a more structured manner.”
He added that the allocation for Jualan Kasih Johor was increased from RM15.4mil to RM45.4mil for 2026.
Lee said the Kampung Melayu Majidee food court pilot project aimed to address cost pressures at the source, particularly rental and operating expenses faced by traders, to help keep food prices stable.
“Kasih Johor vouchers will be distributed to residents for use at the food court, to help consumers enjoy affordable, quality meals while encouraging traders to keep prices fair.”
The model could potentially be expanded to other areas as a community-based food cost control initiative, he said.
On enforcement, Lee said the state government was working with Domestic Trade and Cost of Living Ministry (KPDN) to monitor subsidised diesel to prevent leakages.
This includes monitoring diesel consumption in the logistics and industrial sectors to ensure only eligible parties benefit from subsidies such as Subsidised Diesel Control System (SKDS).
He added that the state also supported the targeted subsidy approach, including schemes aimed at key sectors such as public transport and logistics.
“This ‘whole-of-government’ approach ensures federal policies are reinforced by state-level initiatives, to deliver a more comprehensive impact for the people,” he said.
