Sea and land transport remain stable despite global energy turmoil, though aviation and tourism face significant strain from rising costs and disrupted flows.
KUALA LUMPUR: Malaysia’s sea and land transport sectors have remained relatively stable in cargo handling and public transport despite the ongoing global energy crisis, according to Economy Minister Akmal Nasrullah Mohd Nasir.
He noted, however, that the aviation and tourism sectors are already showing clear signs of strain from the conflict’s spillover effects.
Between March 23 and 28, a total of 55 weekly flights involving six airlines were cancelled, while tourist arrivals from March 1 to 25 also declined due to the crisis.
The situation is further compounded by projections of a drop of 1.5 million air passengers from West Asia in 2026.
“The West Asia conflict has caused major disruptions to global energy flows, and we are feeling the spillover effects,” Akmal Nasrullah said during a televised briefing on the energy crisis.
He added that although a two-week ceasefire was agreed on April 8 between the United States and Iran, there are no clear signs that the conflict will end soon.
“On April 13, peace talks failed to reach a conclusive resolution, and the US announced maritime sanctions on Iranian ports,” the minister stated.
He explained that while technically targeting traffic to those ports, the move adds uncertainty and keeps shipping flows through the Strait of Hormuz at constrained levels.
Akmal Nasrullah said that as long as key global energy routes remain exposed to security risks, insurance premiums, freight costs and petroleum prices are likely to stay elevated.
“Transport costs have nearly doubled, while insurance premiums have risen by up to 16 times per voyage,” he revealed.
He emphasised that this matters because higher logistics costs feed through to diesel and petrol prices, production inputs and ultimately the cost of living.
On the labour market, the minister said more visible impacts are expected in the second quarter of this year, or beginning in June if the conflict persists.
This expectation comes despite an overall decline in job losses from January to early April.
“This shows the crisis has a lag effect,” Akmal Nasrullah said, adding that “today, we see cost pressures; weeks or months later, we see the impact on jobs and incomes.”
The government, through the National Economic Action Council, is now assessing appropriate mitigation measures to ease public concerns.
