PETALING JAYA: Global supply pressures are expected to have a greater impact in the third quarter of 2026, particularly on prices, industrial operating costs and employment, says Akmal Nasrullah Mohd Nasir (pic).
The Economy Minister said the impact of global supply pressures in 1Q this year remained contained, supported by strong gross domestic product (GDP) growth and resilient domestic economic fundamentals. Malaysia’s GDP expanded by 5.4% in 1Q this year, exceeding advance estimates of 5.3%.
“The country’s economy remains on a strong footing and continues to demonstrate resilience in facing an increasingly challenging global environment.
“The global supply pressures are being closely monitored as the impact does not occur immediately but may be transmitted gradually to goods prices, industrial operating costs, employment and household spending,” he told a press conference yesterday.
He also said the government would continue to implement targeted interventions and ensure the people receive the appropriate support.
“This includes maintaining the Budi Madani Diesel aid of RM300 per month, as well as an additional interim assistance of RM100 for eligible recipients.
For padi farmers, the Ploughing Incentive for Padi Farmers of RM300 per hectare has begun disbursement.
“These measures are important as fuel and agricultural operating costs have a direct impact on the food supply chain,” he said.
Akmal Nasrullah added that Malaysia’s GDP growth is also better compared with several other major global economies, including Singapore.
“Domestic economic fundamentals remain stable despite the increasingly challenging global environment,” he said.
He added that Malaysia’s financial markets remained stable and manageable with only slight movements recorded in Bursa Malaysia’s index.
The minister also said global energy conditions remained relatively stable with gas prices rising slightly while coal prices eased.
“The average price of liquefied natural gas increased slightly by 1.7% from US$17.41 to US$17.71 per million BTU.
“This increase indicates that the global gas market remains under control with sufficient inventories available across major markets worldwide.
“In the energy sector, coal prices recorded a drop of 1.3%, indicating that global supply and demand remain balanced, particularly for the electricity generation sector in Asia,” he said, adding that the average price of Brent crude increased moderately by 3.5%.
Akmal Nasrullah said the government is seeking to further refine the Subsidised Diesel Control System (SKDS) to ensure subsidies are more targeted.
“The proposal to improve SKDS will be implemented in a balanced manner to tighten controls against leakage while safeguarding business operations and supply chains,” he said.
On inflation, he said although it went up to 1.9% in April from 1.7% in March, the rate remains moderate and under control.
“The rate is lower than several regional economies, including the Philippines at 7.2%, Vietnam (5.5%), Indonesia (2.4%) and Korea (2.6%).
“The main factor is the increase in the average diesel price in Peninsular Malaysia,” he said.
Akmal Nasrullah said the trend in goods prices, particularly food items, also remains stable.
