KUALA LUMPUR: The Ministry of Investment, Trade and Industry (MITI) has confirmed that the Iran-Israel conflict has triggered a sharp increase in global oil prices.
This surge has raised the cost of raw materials and logistics, affecting multiple industries.
MITI noted that import inflation and production costs in strategic sectors like electrical and electronics (E&E), chemicals, and automotive have been impacted.
“MITI will continue to monitor any indirect impact to ensure economic stability,” the ministry stated in a parliamentary response.
To mitigate risks, the government is diversifying international supply sources and boosting local production of critical materials.
The ministry was addressing concerns raised by Datuk Andi Muhammad Suryady Bandy regarding the conflict’s effect on Malaysia’s economy.
MITI warned that the conflict could destabilise the Middle East, particularly key energy routes like the Strait of Hormuz.
Malaysia has welcomed the ceasefire announced on June 24, 2025, between Iran and Israel.
The Strait of Hormuz handles a third of global oil trade, and disruptions could severely affect markets, especially in Asia.
MITI reaffirmed its commitment to safeguarding Malaysia’s economy through short and long-term strategies.
Efforts include stabilising supply chains, lowering production costs, and retaining high-quality foreign investments.
The ministry will keep monitoring the conflict’s developments to protect trade and economic stability. – Bernama
