Malaysia’s NEAC will meet to discuss the West Asia conflict’s impact on aviation and oil supply chains, aiming to safeguard national energy security and manage inflation
JOHOR BAHRU: The National Economic Action Council will convene a special meeting to evaluate the impact of the prolonged West Asia conflict on Malaysia’s transportation sector and oil supply.
Chaired by Prime Minister Datuk Seri Anwar Ibrahim, the meeting will involve relevant ministries and industry players to assess national oil supply capacity and necessary mitigation measures.
Economy Minister Akmal Nasrullah Mohd Nasir stated the council will focus on industries affected by potential global oil supply disruptions.
“We want to assess the country’s oil supply capacity and the mitigation measures needed to ensure continued supply,” he said after an event here.
He highlighted the strategic importance of the Strait of Hormuz, a critical global shipping lane for oil and gas.
Any production disruption in Iran or the wider Middle East could affect the supply of imported components worldwide, potentially straining global supply chains.
The minister explained that supply disruptions have a direct impact on petroleum-based products like petrol and diesel.
Many industries also rely on oil in their production and distribution processes, meaning disruptions could raise manufacturing costs significantly.
“When oil supply is disrupted, it increases the production costs of goods that rely on oil as part of their input and output processes,” Akmal Nasrullah added.
He warned that the situation would affect logistics, transportation, and supply chain costs, which may eventually influence consumer goods prices.
Such disruptions are also expected to affect the country’s inflation rate, despite Malaysia containing inflation at around 1.4% for the whole of 2025.
“We may see inflationary pressures in the months ahead due to supply chain disruptions as oil-related input and output costs increase,” the minister said.
Tensions in West Asia escalated recently following attacks involving Israel, the US, and retaliatory strikes by Iran.
The Strait of Hormuz sees a significant share of global energy supply pass through its narrow waters daily.
The Sun Malaysia
