KUALA LUMPUR: The ongoing global supply and energy crisis should not be viewed solely as an oil price issue, but as a broader physical disruption that could affect households through rising costs of living, says Tan Sri Mohd Hassan Marican (pic).
The chairman of the Crisis Management Task Force of the National Economic Action Council said the impact would likely be felt in stages, beginning with fuel and logistics costs before spreading to petrochemical, feedstocks, plastics, fertilisers, manufacturing and construction.
“Eventually, it will reach households through broader cost-of-living pressures,” he said, Bernama reported.
He warned that an exclusive focus on fuel prices risks underestimating the scale of the disruption, as its effects will gradually extend across various sectors of the economy if it continues.
“Treating it purely as an oil price issue is a very common misconception.”
While Malaysia is in a relatively stronger position than many countries due to its established oil and gas ecosystem and experienced industry players and institutions like PETRONAS, Mohd Hassan said Malaysia remains exposed to external shocks as an open economy.
He pointed out that a range of measures by the government had helped stabilise conditions during the initial phase of the global supply crisis.
These include targeted fuel subsidy mechanisms under Budi Madani and Subsidised Diesel Control System, expanded cash assistance through Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah, as well as strategic food supply interventions through Jualan Rahmah Madani and Agro Madani.
Mohd Hassan said additional financing support for micro, small and medium enterprises launched recently would also help businesses manage rising operating costs.
While Malaysia has strong fundamentals to weather these challenges, he said managing the crisis requires national discipline and coordination across government, industry and the public.
He said with prolonged global supply disruptions, building national resilience can no longer rely on government action alone.
“Every adjustment matters, whether it is optimising our travel, cutting down on electricity and fuel waste, building smarter logistics chains, maximising public transport, or simply being more deliberate with household spending.
“Every bit of efficiency helps shield our economy from these global pressures,” he said.
Mohd Hassan said with global competition for resources heating up, conservation and careful resource management will grow increasingly critical to a nation’s ability to weather external shocks.
He affirmed that the government will maintain its focus on resilience, targeted assistance and fiscal discipline, while building strategic capabilities across critical sectors.
“We are backed by robust institutions, strong domestic energy capabilities, experienced leadership and seamless industry coordination,” he said.
