KUALA LUMPUR: The government is reminding the public and businesses not to become complacent or underestimate the economic and supply chain impacts following Iran’s declaration of the renewed closure of the Strait of Hormuz.
Economy Minister, Akmal Nasrullah Mohd Nasir, said that although there are reports that a small number of commercial vessels are still passing through the strait, this should not give a false sense of comfort to either the government or the public.
“Our economy remains exposed to geopolitical instability and disruptions abroad.
“The government, the public and businesses must be prepared and remain vigilant as there will be impacts in terms of oil prices, transportation cost pressures due to shipping transit time, global raw material input prices, and issues affecting the supply and prices of food,” he said in a video posted on his official TikTok account last night (July 15).
The minister was commenting on the renewed closure of the Strait of Hormuz following a series of strikes launched by the United States on Iran on July 8.
“None of us can afford to be complacent and we must be able to adapt to the economic challenges resulting from the continued conflict and military strikes in West Asia,” he said.
Meanwhile, Akmal Nasrullah said that industries would face mounting global supply chain pressures if the crisis is prolonged, which would affect various industries and, if left unchecked, would impact consumers.
“When we talk about supply chains, they are actually more complicated than we might expect. For example, if plastic manufacturers come under pressure, the effects can spread to other industries such as food packaging, electrical and electronics components, automotive, medical devices, construction, agriculture, and manufactured exports,” he said.
Therefore, he said, we must look at the supply chain ecosystem to prevent disruptions to business operations and the subsequent chains, as well as reducing dependence on external situations. – BERNAMA
