PETALING JAYA: With the situation in the Strait of Hormuz showing no end in sight, the Economy Ministry said the government has begun preparing measures to deal with the long-term effects of the war on the local economy.
The ministry said the current situation has moved beyond a short-term fuel shortage shock into a global supply crisis that will affect the daily lives of Malaysians.
"The issue is not only whether physical supply is disrupted, but also involves risk premiums, insurance costs, logistics, delivery delays, and disruptions to global supply chains.
"This means it is not merely an issue of oil prices anymore-it has evolved into a global supply crisis affecting energy costs, logistics, raw materials, food, services, and ultimately, the daily lives of the people.
"As such, we are now in a phase of managing prolonged pressure, no longer just the initial shock phase," the ministry said in a statement on Tuesday (April 21).
The ministry warned that while some economic fundamentals remain resilient, the full impact of the war is expected to hurt the local economy later.
"The full impact of this crisis typically reaches the economy with a lag through logistics costs, import prices, investment decisions, and consumer sentiment so while our fundamentals remain strong, there is no room for complacency," it added.
The Statistics Department Consumer Price Index report for March 2026 showed inflation rising to 1.7% from 1.4% in February. The department also recorded an increase in average diesel prices in Peninsular Malaysia to RM4.09 per litre from RM2.98 in February, while RON97 rose to RM4.01 from RM3.11.
"This shows that the effects of the crisis are no longer confined to global markets-they are now filtering into transportation costs, logistics, goods prices, and daily household spending," the ministry added.
The second quarter of 2026 will be used as a key period to assess whether rising costs translate into operational downsizing or job losses. The government is engaging with the manufacturing and tourism industries to identify critical inputs and effective interventions.
During the National Economic Action Council meeting on Tuesday, several strategic mitigation measures were agreed upon to safeguard supply chains.
For manufacturing, the government will facilitate logistics and strengthen bilateral cooperation with countries such as Australia and China to secure essential inputs.
The government also plans to use the tourism industry as a buffer to generate foreign exchange.
"The government has agreed on measures including refocusing on stable markets such as ASEAN, East Asia, Australia, and India. There are also plans to extend the Visit Malaysia 2026 campaign to 2027, targeting 47 million visitors and RM329bil in tourism revenue," the ministry said.
