PUTRAJAYA: Ongoing tensions in the Middle East are putting a severe squeeze on Malaysia’s logistics and aviation sectors, resulting in longer travel times and rising supply chain costs, says Transport Minister Anthony Loke (pic).
He said the closure of airspace in conflict zones has forced airlines to reroute flights, particularly those bound for Europe.
“This has not only disrupted operational schedules but also brought significant cost implications,” he said.
Loke added that the temporary suspension and cancellation of daily flights to the Middle East at the onset of the crisis had also caused substantial financial losses to the aviation industry.
As such, he said the Transport Ministry is holding ongoing discussions with the Civil Aviation Authority of Malaysia (CAAM) and Malaysia Airports Holdings Bhd (MAHB) on the impact of the global energy crisis.
An engagement session with industry players will also be held next week to discuss measures to address rising energy costs.
“I have met with CAAM and held discussions with MAHB over the past one to two weeks.
“We will continue engaging the aviation industry next week to outline measures to support its sustainability,” he said at the ministry’s monthly assembly here yesterday.
He said the maritime sector has also been affected, with tensions in key waterways such as the Strait of Hormuz, the Suez Canal and the Red Sea, forcing commercial vessels to take longer alternative routes around the Cape of Good Hope in South Africa.
“This diversion adds between 10 and 15 days to voyage times, reducing vessel utilisation efficiency and driving up inventory costs,” said Loke.
Compounding the situation, he said shipping companies are now imposing additional risk surcharges for each container, while war risk insurance premiums have surged.
“All these factors are placing immense pressure on the competitiveness of our national logistics sector, requiring us to act strategically and cohesively,” he said.
To cushion the impact, Loke said the government, through the National Economic Action Council chaired by Prime Minister Datuk Seri Anwar Ibrahim, is closely monitoring developments to ensure supply chain security and economic stability.
Meanwhile, he noted a likely shift in commuter behaviour, with more people expected to turn to public transport and electric vehicles amid fuel price uncertainty.
In a related development, Loke said road safety remains a priority, with stricter measures and faster responses needed to reduce accidents, particularly those involving alcohol and drug use.
“We acknowledge this is a serious issue that claims lives and draws public attention.
“We must respond swiftly to ensure road safety. The ministry will continue to strengthen safety measures and review legal amendments,” he added.
