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PRIME MINISTER Datuk Seri Anwar Ibrahim has stated that the Malaysian government will continue to adopt necessary policy measures to address escalating global economic instability, which he said has deteriorated significantly in recent months compared to earlier in the year.
Anwar, who also serves as Finance Minister, noted that international economic conditions have become markedly more challenging in May compared to February, pointing to a sharp escalation in crude oil prices as a major driver of global cost pressures.
“At the end of February, crude oil prices were at US$70 per barrel… today (prices have surged) to US$115 per barrel. This increase is very high, meaning the impact of economic uncertainty is being felt globally,” he said.
He explained that the rapid increase in energy prices is already reverberating through supply chains and production systems, affecting essential inputs across multiple sectors of the economy.
“There is a shortage of materials for those working in plantations, such as a sudden shortage of phosphate, while diesel prices have also increased. Those working in factories, lorry drivers… everyone is affected,” he said.
Anwar delivered the remarks during his Labour Day address in conjunction with the National Labour Day 2026 celebration, highlighting the widening economic strain on both workers and industries amid persistent global volatility.
Oil prices edged lower on Friday but remained firmly above the US$110 per barrel threshold, as the prolonged conflict in the oil-rich Middle East entered its second month and continued disruptions around the Strait of Hormuz fuelled supply concerns.
Although prices retreated from the previous day’s peak, when Brent crude briefly surged to US$126 per barrel—its highest level since Russia’s 2022 invasion of Ukraine—they remained historically elevated amid sustained geopolitical risk.
In morning trading, Brent crude futures were hovering at around US$111 per barrel, while West Texas Intermediate (WTI) futures were trading near US$105 per barrel.
Earlier in April, crude prices had briefly fallen below the US$100 per barrel mark, but quickly rebounded later in the month following renewed attacks near the Strait of Hormuz, a critical maritime chokepoint for global energy flows.
The benchmark Brent crude has already climbed about 50 per cent since March.
Market analysts warned that the risks of further escalation remain significant. Nuvama Institutional Equities noted that a prolonged closure of the Strait of Hormuz—which handles roughly 20 million barrels of oil per day—could drive crude prices into a range of US$110 to US$150 per barrel.
Separately, a Haitong Futures note cited by Reuters suggested that the current ceasefire phase may be a precursor to renewed conflict, adding that failure in US-Iran negotiations by the end of April could trigger another sharp spike in oil prices and push them to new yearly highs. - May 1, 2026
