KUCHING: The ongoing conflict in West Asia, despite the existence of a peace agreement, continues to threaten global supply chains and could potentially drive up the cost of essential goods while placing additional pressure on the national economy.
Deputy Prime Minister Datuk Amar Fadillah Yusof said the current situation remains uncertain as attacks continue despite peace efforts having been agreed upon.
He said disruptions to international shipping routes would have a direct impact on the delivery of various essential goods, not only oil and gas but also other basic supplies such as chemicals, fertilisers and industrial materials that form key components of the global supply chain.
“When attacks occur, they inevitably disrupt the movement of ships transporting essential supplies to countries around the world. It is not just oil and gas, but also a wide range of other essential goods needed globally.
“This situation will increase tensions as well as the costs of managing and producing essential goods used in the medical, services, industrial and other sectors,” he told reporters after officiating at the closing ceremony of the Regata Sejijak event here today (July 12).
Fadillah, who is also the Minister of Energy Transition and Water Transformation said the government continues to closely monitor global geopolitical developments and hopes that all countries will honour the agreements that have been reached and return to the negotiating table to seek solutions capable of ensuring global stability.
Commenting on the country’s energy supply, Fadillah assured that Malaysia’s energy situation remains under control following negotiations undertaken by the government with various stakeholders.
“Alhamdulillah, Malaysia’s situation remains under control. Through PETRONAS’ role and the government’s negotiations led by the Prime Minister at various levels, the country’s energy supply remains secure at this point,” he said.
However, he acknowledged that uncertainty in global oil and gas prices remains a major challenge, as fluctuations in commodity prices would affect the country’s financial position.
In this regard, he said the government will continue formulating strategies to ensure the country’s financial sustainability while keeping the welfare of the people as its top priority.
