Kuala Lumpur (VNA) - Malaysia's Economy Minister Akmal Nasrullah Mohd Nasir warned on June 29 that the recent decline in crude oil prices does not signal an end to economic pressures, as global supply disruptions are expected to continue affecting energy markets and supply chains for the next one to two years.
Akmal told the Dewan Rakyat (House of Representatives) that global energy markets are expected to stabilise in stages from the third quarter of 2026, but this would depend on geopolitical stability and the smooth flow of trade routes.
The supply crisis was triggered by the US-Israel conflict with Iran in February 2026, which has disrupted global trade flows and raised concerns over oil prices, logistics costs, industrial inputs, food prices, inflation, investor confidence and business continuity. Since the conflict began, Brent crude oil rose from 70.83 USD per barrel to a high of 144.5 USD on April 7, 2026, before easing to 70.67 USD on June 26.
He said the government will continue monitoring and intervention measures throughout the recovery period to reduce pressure on households, micro, small and medium enterprises (MSMEs) and industries.
The pressure has already been felt across key sectors including logistics, aviation, shipping, agriculture, manufacturing, construction and trade.
Global freight costs have nearly doubled, while insurance premiums for merchant ships travelling through high-risk routes have risen by up to 16 times for a single trip. Based on current assessments, fertiliser costs are projected to rise by 15% to 20%, while animal feed costs are expected to increase by about 8%.
Malaysia’s economy grew 5.4% in the first quarter of 2026. Exports for January to May 2026 rose 24.3% to 793.8 billion MYR (194.53 billion USD), while foreign direct investment inflows reached 22.8 billion MYR in the first quarter, mainly in the services sector.
On supply security, Akmal said fuel supply is sufficient until August 2026, while the government is working to ensure fuel availability remains stable beyond that period./.
