JOHOR BAHRU, March 15 — The National Economic Action Council (NEAC) will hold a meeting tomorrow to discuss the impact of the prolonged conflict in West Asia on the transportation sector, particularly aviation, and mitigation measures to safeguard oil and gas (O&G) supply.
Economy Minister Akmal Nasrullah Mohd Nasir said the meeting, chaired by Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, will also involve other relevant ministries and industry players.
“We want to assess the country’s oil supply capacity and the mitigation measures needed to ensure continued supply.
“We will also focus on industries affected by disruptions to global oil supply,” said the Johor Bahru member of Parliament after attending the Jualan Rahmah Kasih Sayang programme here today.
The ongoing conflict is expected to affect global O&G supply, he said, particularly given that the Strait of Hormuz is one of the world’s most important shipping lanes.
He noted that any disruption to production in Iran or elsewhere in the Middle East could also affect the supply of various components imported by countries worldwide, potentially disrupting global supply chains.
“Disruption of O&G supplies can be viewed in several angles. First and foremost is the direct impact on petroleum-based products such as petrol, diesel and other goods that use oil as a base material,” he said.
Akmal Nasrullah added that many industries rely on oil in both production and distribution processes, thus supply disruptions could raise manufacturing costs.
“When oil supply is disrupted, it increases the production costs of goods that rely on oil as part of their input and output processes,” he said.
The situation will also affect the cost of logistics, transportation and supply chains, which may eventually influence the prices of goods, the Economy Minister said, noting that such disruptions are also expected to affect the country’s inflation rate.
“Although we were able to remain resilient last year and managed to contain inflation at around 1.4 per cent for the whole of 2025, we may see inflationary pressures in the months ahead due to supply chain disruptions as oil-related input and output costs increase,” he said.
Tensions in West Asia have escalated since Feb 28, when Israel and the United States (US) launched attacks on Iran, prompting retaliatory strikes by Tehran against US interests in Gulf countries.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is among the world’s most important shipping routes for O&G, with a significant share of global energy supply passing through the strait daily.
