PETALING JAYA: Stakeholders are calling on the government to roll out Covid-19-era support measures, including loan moratoriums and targeted subsidies, amid global energy supply disruptions and rising fuel costs.
The call comes in light of concerns among businesses that the oil shock is threatening to squeeze profit margins, disrupt operations and push up inflation.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general Datuk Koong Lin Loong said the measures are necessary as a prolonged conflict in the Middle East could mirror the economic strain seen during the pandemic.
“If the conflict continues for the next few months, it will be like Covid-19 time,” he said, adding that businesses would have little choice but to pass on higher costs to consumers to safeguard already thin margins.
He cautioned about the dual impact on supply chains and operating costs, saying that higher logistics expenses could force some shipping routes to halt, delaying raw material deliveries and resulting in higher production costs.
A recent ACCCIM survey found that about 48% of respondents were planning price increases, underscoring the mounting pressure on businesses, he said.
Besides loan moratoriums for affected companies, Koong said other similar Covid-19 measures, such as flexibility in tax payments to reduce CP204 instalments and allowing firms to offset overpaid taxes, should be implemented.
“The government has to act swiftly because we cannot wait for things to get worse first,” he said, stressing that businesses, policymakers and consumers must each play their role in navigating the situation.
Federation of Malaysian Manufacturers (FMM) president Jacob Lee Chor Kok said the proposed 25%-28% increase in worker transportation costs would add to an already “critical” cost environment for businesses.
He added that manufacturers here were grappling with higher energy prices, logistics surcharges and supply chain disruptions linked to the Middle East conflict.
Additional cost burdens, such as those on workers’ transport, will further strain business operations and erode competitiveness, he added.
“Extending diesel subsidies to factory bus operators would provide immediate cost relief and help stabilise one of the most essential components of industrial operations,” he said.
He cautioned that rising diesel costs would have a multiplier effect across the manufacturing value chain, ultimately feeding into broader inflationary pressures.
