Kuala lumpur: The National Economic Action Council (NEAC) is set to convene a meeting tomorrow to deliberate on the repercussions of the ongoing conflict in West Asia on the transportation sector, particularly focusing on aviation, and to formulate mitigation strategies to ensure the stability of oil and gas (O and G) supply.
According to BERNAMA News Agency, Economy Minister Akmal Nasrullah Mohd Nasir announced that the meeting will be chaired by Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister. The session will involve key ministries and industry stakeholders to assess the country's oil supply capacity and explore necessary mitigation measures to maintain an uninterrupted supply.
The minister highlighted the critical impact of the ongoing conflict on global O and G supply, emphasizing the strategic importance of the Strait of Hormuz, a vital shipping lane. He warned that any production disruptions in Iran or the broader Middle East could affect the global supply of components, potentially leading to widespread supply chain disturbances.
Minister Akmal Nasrullah underscored the multifaceted consequences of O and G supply interruptions. He explained that disruptions could directly impact petroleum-based products such as petrol and diesel, which are crucial for various goods. Such disruptions could escalate manufacturing costs due to the reliance of many industries on oil for both production and distribution processes.
He further elaborated on the potential ripple effect on logistics, transportation, and supply chain costs, which could subsequently influence the prices of goods. The minister expressed concerns over the potential inflationary pressures that could arise, noting that while inflation was contained at approximately 1.4 percent for 2025, there might be challenges ahead due to the increased costs associated with oil-related inputs and outputs.
The tensions in West Asia have intensified since February 28, following attacks by Israel and the United States on Iran, leading to retaliatory actions by Tehran targeting US interests in the Gulf region. The Strait of Hormuz remains a crucial conduit for global energy supplies, with a significant portion of the world's energy resources passing through it daily.