KOTA BARU: The conflict in the Middle East that has affected maritime movement in the Strait of Hormuz has not had a significant impact on the country's commodity exports so far, says Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad (pic).
She said, however, that other costs including transportation, logistics and insurance are expected to increase if the crisis continued.
"For now, there is no significant impact even though the Strait of Hormuz is impassable, but when the route is reopened, there will definitely be an impact on trade.
"Among the commodities that could potentially be affected include wood, furniture and palm oil-based goods.
"If the conflict continues, logistics costs are expected to increase and when ships pass through conflict areas, ship protection insurance premiums will also increase," she told reporters after attending the Minister's Field Trip Programme at Maahaz Tahfiz Al-Quran Al-Iman here on Tuesday (March 11).
Tensions in the Middle East have been escalating since Feb 28 following attacks on Iran by Israel and the United States attacks, followed by Tehran's retaliatory attacks on US interests in the Gulf countries.
Previously, Prime Minister Datuk Seri Anwar Ibrahim said the government would do its utmost to maintain the price of RON95 at RM1.99 per litre so as not to burden the people.
Anwar, who is also the Finance Minister, said that although oil prices were reported to be increasing in the global market, the situation in the country is still under control with the low price of RON95 through targeted subsidies. – Bernama
