KUALA LUMPUR, April 9 — Prime Minister Datuk Seri Anwar Ibrahim today warned that global conflict is driving up shipping and insurance costs, even as Malaysia’s economy continues to outperform expectations and remains relatively stable compared with its neighbours.
In his first address to Transport Ministry staff at its monthly assembly, Anwar said the ongoing conflict involving the United States, Israel and Iran has already pushed up logistics costs, particularly for oil shipments.
He said insurance premiums for shipments have surged by more than 100 per cent, while freight charges have also risen.
He noted that even oil purchased before the war is now becoming more expensive due to higher transport costs.
“The cost has increased… not just because of oil prices, but because of insurance and freight,” he said, noting that shipments already en route are now affected.
“Old costs from before the war, when freight was already moving, have now been affected too. The cost has increased because of insurance and freight.”
However, despite this, Anwar said Malaysia’s good relations with foreign countries and their leaders have placed it in a slightly better position compared with neighbouring countries facing crises, such as the oil shortages in the Philippines.
“It’s about 20 per cent that goes through Hormuz… but there is also the Suez Canal and other routes,” he said.
“Alhamdulillah, because of our good relations, Petronas ships were allowed to pass,” he added.
Anwar also pushed back against what he described as “half-truths” surrounding the Strait of Hormuz, warning against oversimplified claims about global oil flows.
“Some speak as if they understand everything, but their knowledge is shallow and it confuses the public,” he said, adding that while the strait is a critical route, global supply chains involve multiple channels, including the Suez Canal.
He stressed that Malaysia has been able to mitigate some of the impact due to its strong international relations, including with Iran, which has allowed vessels such as those operated by Petronas to pass through key routes.
Despite global headwinds, Anwar said Malaysia’s economic indicators remain encouraging.
Citing recent data from Bank Negara Malaysia, he said growth has exceeded projections, investments are at record highs and inflation remains among the lowest.
However, he cautioned that the effects of the conflict will not dissipate quickly, noting that recovery in the global energy sector could take between three and five years even if hostilities end soon.
“Growth is better than we predicted… investment is the highest, inflation among the lowest,” he said.
“We should be grateful… we are not seeing petrol stations closing, no long queues, people not forced to walk to work,” he added.
At the same time, Anwar warned that the impact of the conflict will not be short-lived.
“Even if the war ends tomorrow, it will take three to five years to fully recover,” he said.
