Malaysia Secures Energy Supplies Through July as Middle East Shipping Costs Jump 80%
Updated
Updated · Reuters · May 25
Malaysia Secures Energy Supplies Through July as Middle East Shipping Costs Jump 80%
5 articles · Updated · Reuters · May 25
Malaysia has enough energy supplies to last until the end of July despite disruptions linked to the Iran war, Economy Minister Akmal Nasir said, citing Petronas data.
Existing power reserves can also meet the current rise in demand, but the conflict has pushed shipping costs to the Middle East up 50% to 80% and lifted insurance premiums by as much as 3%.
The pressure is already hitting trade-sensitive sectors: Malaysia's commodities sector shrank 14.7% in the first quarter from a year earlier as exports of cocoa, rubber, palm oil and timber fell.
Agricultural commodity exports are forecast to drop 13.48% to 170.2 billion ringgit in 2026, prompting officials to seek new palm oil markets to diversify shipments and protect competitiveness.
Aviation is also under strain, with daily passenger flights down 31.5% in April after Middle East cancellations and rerouting, underscoring the wider economic fallout from the conflict.
As Malaysia's exports hit record highs, why are its vital commodity sectors collapsing from the escalating Middle East war?
Malaysia's energy is secure until July. What is the plan if the Mideast war blocks global supplies through December?