Kuala Lumpur (VNA) – Supply disruptions caused by the closure of the Strait of Hormuz are emerging as a direct and immediate threat to Malaysia’s economy.
According to a report by the Southeast Asian Futures Initiative Centre (Seafic), a total of 106 types of Malaysian imports pass through this strategic maritime chokepoint, ranging from essential energy supplies to manufacturing inputs and consumer food products.
Experts warn that if disruptions persist, supply chain bottlenecks could trigger sharp price increases and significantly alter consumer spending patterns.
Among the most vulnerable products are petroleum sulphonates, a key ingredient used in the production of engine lubricants and industrial additives. Malaysia relies on the Strait of Hormuz for 97.9% of its imports of this commodity, primarily sourced from Kuwait, leaving the country exposed to severe shortages should supplies be interrupted.
Liquefied propane and butane, both major components of liquefied petroleum gas (LPG), are also classified as high-risk imports, with dependency rates on the route standing at 83.9% and 54.8%, respectively. Any disruption in the supply of these energy products would have an immediate impact on operating costs for food outlets and small eateries, which are not covered by the gas subsidy schemes available to Malaysian households.
The impact of the crisis is also spreading across the petrochemical and packaging industries. Plastics such as high-density polyethylene (HDPE) and low-density polyethylene (LDPE), which are widely used in the production of milk bottles, plastic bags and food packaging, are facing steep price increases rather than outright shortages.
The price of polyethylene terephthalate (PET) has reportedly doubled within the first month of the disruption, driving production costs for plastic manufacturers up by between 15% and 40%. The surge in costs has prompted a wave of packaging material substitutions, with dairy producer Farm Fresh among the firms shifting from plastic bottles to paper-based cartons.
In response to these challenges, businesses and manufacturers in Malaysia are being advised to diversify their sourcing strategies by seeking alternative suppliers from different regions./.
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