Malaysia’s government is maintaining current fiscal policies while monitoring global conflicts for potential economic impacts on oil prices and trade.

KUALA LUMPUR: The government is maintaining its current fiscal policy while closely monitoring developments in global geopolitical conflicts that could affect oil prices and the national economy.

Economy Minister Akmal Nasrullah Mohd Nasir said the government is taking a cautious approach, assessing the seriousness and the duration of any conflict before considering any additional measures.

He said that Malaysia’s resilient economy and its status as a net exporter help bolster confidence in economic stability.

“The government is maintaining existing policies. We are also assessing the seriousness of the conflict and how long it will continue,” he told reporters after attending the launch of TikTok’s Malaysia Socioeconomic Impact Report 2025.

He added that the government has scenario planning to determine what actions should be taken if the situation reaches a certain level.

The government is also holding discussions with relevant parties, including the Ministry of Finance, Petronas, Bank Negara Malaysia and the Ministry of Foreign Affairs, to get up-to-date assessments of global developments.

Akmal Nasrullah said the geopolitical conflict could affect logistics and transportation costs, including shipping insurance premiums, especially along major trade routes such as the Strait of Hormuz.

“The effect on food prices, particularly imported goods, will only become apparent later, but the relevant ministries are closely monitoring supply stability,” he said.

Tensions in West Asia have escalated since last Saturday, when Israel and the United States launched strikes on Iran, which Tehran later retaliated against by targeting US interests in the Gulf region.

 The Sun Malaysia