The government is closely watching the Middle East conflict but expects minimal disruption to Malaysia’s total trade, with Iran trade accounting for less than 0.1% of the total

KUALA LUMPUR: The government is closely monitoring the ongoing conflict in the Middle East but has assured that its impact on Malaysia’s total trade will be minimal.

Deputy Investment, Trade and Industry Minister Sim Tze Tzen said trade with Iran represents a very small portion of Malaysia’s overall commerce.

He told the Dewan Negara that trade between Malaysia and Iran amounted to RM2.45 billion last year, which is just 0.09% of Malaysia’s total trade.

“So the impact is less than 0.1% of Malaysia’s total trade,” he said during a question-and-answer session.

Sim was responding to a supplementary question from Senator Low Kian Chuan regarding the conflict’s impact on exports, particularly due to shipping disruptions in the Strait of Hormuz.

He stated that Malaysia complies with United Nations sanctions and only trades in permitted items with Iran.

These permitted goods include food, palm oil, palm-oil-based products, textiles, apparel, footwear, and natural rubber.

“So far, the areas that affect Malaysia are petroleum and natural gas from Iran. However, we do not import much from there,” he explained.

Earlier, Sim said Malaysia remains committed to a neutral and non-aligned stance in addressing global geopolitical uncertainty.

He was responding to a question from Senator Wan Martina Wan Yusoff about balancing geopolitical pressure without undermining export market access.

He added that Malaysia’s position as a “friend to everyone” has helped keep the country’s trade performance stable.

Tensions in the region escalated recently after the US and Israel launched strikes on Iran, followed by Iranian retaliatory attacks.

 The Sun Malaysia