Minister says Middle East conflict has not yet impacted Malaysia’s commodity exports, but warns of rising logistics and insurance costs if crisis persists.
KOTA BHARU: The ongoing conflict in the Middle East has not yet had a significant impact on Malaysia’s commodity exports, according to Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad (pic).
She warned that transportation, logistics and insurance costs are expected to rise if the crisis continues.
“For now, there is no significant impact even though the Strait of Hormuz is impassable, but when the route is reopened, there will definitely be an impact on trade,” she told reporters.
Noraini identified wood, furniture and palm oil-based goods as commodities that could be affected.
She stated that logistics costs are expected to increase and ship protection insurance premiums will also rise when vessels pass through conflict areas.
Tensions have been escalating in the Middle East since February 28 following attacks by Israel and the United States on Iran.
Tehran subsequently launched retaliatory attacks on US interests in Gulf countries.
Prime Minister Datuk Seri Anwar Ibrahim recently said the government would maintain the price of RON95 at RM1.99 per litre.
Anwar, who is also Finance Minister, said the situation in the country remains under control through targeted subsidies despite rising global oil prices.
