KUALA LUMPUR: A contingency plan has been put in place to cushion the impact of surging global energy prices triggered by the conflict in the Middle East, says Akmal Nasrullah Mohd Nasir (pic).
The Economy Minister said the conflict has driven up Brent crude oil prices, while transportation costs and shipping insurance premiums have also surged.
This situation, he added, has also affected the country's economic stability and increased the cost burden on local industries and the cost of living for the people.
"To ensure that the impact is minimised, the government continuously monitors current economic developments together with relevant ministries and industry players across sectors, including food and energy supply," he said in a parliamentary written reply to a question raised by Tan Sri Abdul Hadi Awang (PN-Marang).
Abdul Hadi had asked the Economy Ministry to state the government’s contingency plan should the Middle East conflict persist to the point of disrupting global energy supplies and increasing the cost of living for Malaysians.
Akmal Nasrullah said constant monitoring is carried out, among others, through the weekly meetings of the National Economic Action Council (MTEN), chaired by the Prime Minister, as well as special committees related to energy security and geopolitical issues.
"In addition, the government has strengthened the management of global supply crises through a data-driven approach by monitoring economic and social indicators in near real-time through the Pantau Krisis dashboard," he said.
This approach, he added, enables a comprehensive and up-to-date assessment of the industrial situation, while feedback from industry players serves as a key input in formulating and implementing appropriate interventions and follow-up actions.
"Contingency plans have also been developed to ensure the government's preparedness in facing economic and geopolitical uncertainties, while reducing the impact on industries and the people," he said.
The Economy Minister added the contingency framework includes strengthening domestic supply chains by maximising local resources and improving logistics, as well as diversifying supply sources and markets to reduce reliance on vulnerable trade routes and external suppliers.
Malaysia is also stepping up international cooperation, including with Australia on energy and agricultural supply security, China on resin and naphtha supply for critical industries, Japan on maritime security and regulatory matters, and Turkmenistan on potential hydrocarbon development, he said.
For the medium to long term, he said the government will accelerate investment, energy diversification and efficiency efforts under the 13th Malaysia Plan to strengthen resilience against future global energy shocks.
These measures reflect efforts to ensure preparedness while cushioning the impact of global economic and geopolitical uncertainty on businesses and households, added the minister.
