THE Malaysian economy remains resilient despite growing uncertainty caused by the Strait of Hormuz crisis, with the country’s GDP expanding by 5.4% in the first quarter of 2026, says Economy Minister Akmal Nasrullah Mohd Nasir.
He said strong domestic demand and steady economic activity continued to support growth, while exports, particularly in the electrical and electronics (E&E) sector, helped cushion the impact of external shocks.
“The country’s economic fundamentals remain resilient,” he said.
Akmal Nasrullah said the crisis was not only pushing up oil prices, but was also affecting logistics, shipping insurance, agricultural inputs, industrial raw materials and global supply chains.
He said Brent crude prices had risen 27.1% this year to an average of US$93.49 (RM397) per barrel, from US$60.85 (RM259) per barrel on Jan 2.
“As an open economy, Malaysia is not immune to these spillover effects. However, the government is closely monitoring developments and will assess whether early intervention measures are necessary,” he said.
The minister said inflation remained moderate at 2% in May, compared with 1.9% in April.
Akmal Nasrullah said the government was focusing on four key areas to mitigate the impact.
These are protecting consumers through targeted assistance and subsidies, stabilising supply and prices, supporting SMEs, and strengthening long-term economic resilience.
