Malaysia is bracing for continued pressure from the global energy crisis as elevated oil and gas prices, coupled with ongoing instability in the Strait of Hormuz, weigh on the economy, according to Economy Minister Akmal Nasrullah Mohd Nasir.
Akmal said the government remains vigilant over global supply disruptions and geopolitical risks, while implementing mitigation measures to ease the burden on households and businesses.
Brent crude averaged US$111.67 per barrel between May 18 and 22, up 1.7% from the previous week’s US$109.85, while LNG prices based on the Japan Korea Marker surged 6.7% to US$19.06 per MMBtu amid regional supply concerns.
“The global energy market remains highly volatile due to geopolitical risks, with persistently high oil prices increasing transportation and consumer costs,” he said.
Despite the uncertainty, PETRONAS assured MTEN that Malaysia’s oil supply remains sufficient until July 2026.
The impact has started to spill into financial markets, with the FBM KLCI falling 1.58% or 27.55 points to 1,712.67 as of May 22 amid cautious investor sentiment.
On the consumer front, Akmal said domestic food prices remained largely under control, moving within a range of negative 2% to positive 3.6% between May 18 and 21.
Chicken prices averaged RM9.57 per kilogram, while beef prices declined 2% to RM38.45 per kilogram. However, mustard greens (sawi) recorded a sharp 3.6% increase to RM7.08 per kilogram.
He urged traders not to profiteer and encouraged consumers to compare prices through the PriceCatcher application and the government’s Crisis Monitoring Dashboard.
Meanwhile, Malaysia’s labour market showed signs of strain, with 7,057 workers losing their jobs in April, up 21% from 5,855 in March. However, the figure remained lower than January’s 10,658.
Akmal said the government will ensure the Employment Insurance System (SIP) and PERKESO’s Lindung Kerjaya programme respond swiftly to affected workers.
Logistics activity remained resilient despite rising shipping costs and insurance premiums, with daily cargo handling rising 8.3% to 848,900 freight weight tonnes and container handling increasing 8.3% to 93,100 TEUs as of April 2026.
However, the aviation sector came under heavier pressure, with daily aircraft movements plunging 31.5% to 2,464 flights due to West Asia route cancellations. International air cargo handling also dropped 14.3%.
Electricity demand rose 3.62% to 21,319MW during the week of May 18 to 23, but remained below the system’s maximum capacity of 21,469MW, indicating reserve capacity is still adequate.
The agriculture sector continued to provide support to the economy, expanding 2.6% in the first quarter of 2026 and contributing RM24.4 billion to GDP, driven by stronger palm oil and livestock performance.
However, the agricommodity sector faces mounting pressure from higher logistics and input costs. Shipping costs to West Asia have jumped between 50% and 80%, while fertiliser prices increased as much as 45.5%.
To cushion the impact, the government is rolling out targeted support measures including BUDI Agri-Komoditi cash aid, bulk fertiliser procurement, logistics assistance and the wider use of organic fertilisers.
MTEN also reviewed the status of medical supplies, with the Health Ministry confirming that the majority of medicine and medical device inventories remain stable despite import dependency risks.
Akmal said the government’s priority remains ensuring adequate supply of essentials, controlling inflationary pressures, protecting jobs and supporting industries affected by the global crisis.
