KUALA LUMPUR: The government is advised to implement strategic intervention measures and a comprehensive contingency plan to address the long-term impacts of the West Asian conflict, particularly involving the risk of the closure of the Strait of Hormuz.
According to an expert, the stability of fuel prices, control of essential goods, and strengthening the structure of government-linked companies (GLC) such as Petroliam Nasional Bhd (PETRONAS) are key factors in ensuring the resilience of the country’s economy against any unforeseen shocks.
Universiti Teknologi MARA (UiTM) psychological warfare expert and security and political analyst, Dr Noor Nirwandy Mat Noordin, said the government needs to ensure that oil prices in the market remain stable through a robust subsidy system to avoid inflationary pressures on the transportation and food industries.
He suggested that oil prices continue to be pegged at a stable rate so that the prices of goods do not spike suddenly, in addition to implementing strict monitoring of subsidy leaks, to ensure that the assistance is only enjoyed by the locals.
“The government also needs to expand the list of controlled goods to protect the people from price manipulation by those trying to take advantage of the (crisis) situation,” he told BERNAMA today.
Elaborating further on the stability of oil prices in the local market, Nusantara Academy for Strategic Research geostrategist, Dr Azmi Hassan, said it is important for the government to maintain the strength of PETRONAS as a bastion of the country’s energy security.
“So, intervention is necessary to strengthen PETRONAS’ structure, to ensure an efficient and effective fuel supply system, while allowing the country’s oil supply to remain sufficient, with the current stock expected to last at least until May.
“This step is important because despite the direct impact we receive from the crisis in West Asia, including the rise in fuel prices, maintaining the price of RON95 is a critical responsibility of the government,” said Azmi, who is also a Fellow of the National Professors Council.
Meanwhile, economist Prof. Dr Barjoyai Bardai praised the government’s move to establish a special economic monitoring committee to assess the impact of the conflict, while suggesting the diversification of food and logistics import sources to reduce dependence on affected routes such as the Strait of Hormuz.
“In strengthening the supply chain and industry as well, the government should identify alternative routes and collaborate with shipping companies to ensure costs do not increase sharply,” he said.
The Provost of Universiti Sains dan Teknologi Malaysia (MUST) also suggested that the government implement a tax deferment initiative for players in the manufacturing and the electrical and electronics (E&E) sectors to support those affected by the conflict in West Asia.
Barjoyai, at the same time, advised the public not to panic easily over the current situation and to always obtain the latest updates from reliable sources.
“Our economy is still stable, so continue to spend wisely and avoid panic buying because the government is prepared to face any eventuality,” he also said.
Tensions engulfed West Asia after Israel and the United States launched a joint attack on Iran on Feb 28, which has so far claimed more than 1,300 lives, including Ali Khamenei, Iran’s former supreme leader, and over 150 schoolgirls.
More than 10,000 people were also injured in the Israeli-US attack. – By Muhammad Faiz Baharin/BERNAMA
