The escalating Middle East tensions will affect Malaysia amid disruption to global trading and supply chains, Deputy Investment, Trade and Industry Minister Sim Tze Tzin said on Friday.
As a nation heavily reliant on international trade, any disruption to global supply chains would inevitably have spillover effects, Sim cautioned at a news conference on the release of Malaysia’s 2025 approved investment data.
“I’m not trying to paint a rosy picture,” Sim said. “I have a friend who said his cancer drug shipment has been affected and cannot arrive on time. So, it is challenging.”
Trade accounts for more than 150% of Malaysia’s gross domestic product, making the country’s economy highly sensitive to external shocks and shifting demand.
US-Israel military campaign in Iran that started over the weekend has spilled over borders in the Middle East, prompting airlines and shipping firms to take longer routes.
The Strait of Hormuz, a critical Iran-controlled waterway that accounts for substantial traffic of ships carrying oil as well as other commodities like grains and metals, has been closed off since the war’s outbreak.
“However, I think larger companies will find ways to work around it,” Sim added.
Source: theedgemalaysia