PUTRAJAYA: Malaysians must brace for economic fallout from the ongoing Middle East conflict, as soaring freight charges and looming fertiliser shortages threaten the nation’s supply chain, says Datuk Seri Anwar Ibrahim.
The Prime Minister said that although Malaysia’s economic indicators remain strong, prolonged instability in the Gulf is sharply raising business costs.
Addressing civil servants at the Transport Ministry on Thursday (April 9), Anwar said shipping costs through key waterways have surged to unprecedented levels.
“The old cost of oil secured before the war was stuck at Hormuz, and now, as it moves to Pengerang, the costs have increased.
“This is because insurance costs have surpassed 100%, and freight charges have also gone up,” he said.
He also warned of an impending spike in fertiliser prices, noting Malaysia’s heavy reliance on imports.
“I went to Felda in Pengerang on Sunday. For this month, prices have not increased significantly, but fertiliser prices will shoot up because our percentage of imported fertiliser is too high,” he said.
Anwar urged the government and the civil service to act proactively rather than wait for the impact to reach consumers.
“Do not wait until there is a problem to be shocked. Our duty is to explain that we must be smart in handling this issue,” he said.
He called on the public to understand the need for recent subsidy rationalisation, including for diesel.
He acknowledged public complaints but said the government cannot afford short-term populist measures that would ultimately damage national finances.
“I could approve it… to make the people happy, make everyone happy temporarily. But after that, everyone will bear the burden. We cannot do that. Leadership and policies must consider current and future challenges,” he said.
His warning comes as the global economy grapples with the fallout from the US-Iran war, which erupted in late February. Although a tentative two-week ceasefire began on April 7, the regional instability continues to threaten global trade routes.
