KUALA LUMPUR — Malaysia is closely monitoring escalating tensions in the Middle East amid concerns the conflict could disrupt global shipping routes and logistics, though the country’s overall trade exposure to Iran remains limited.
Investment, Trade and Industry Deputy Minister Sim Tze Tzin said worsening tensions involving the United States, Israel and Iran could potentially affect global shipping lanes and create logistical challenges for trading nations such as Malaysia.
“I’m not trying to paint a rosy picture. Trading routes may be affected, and logistics disruptions are possible. Malaysia, as a global trading nation, could experience indirect effects,” he told reporters today, as reported by NST.
Sim said early signs of supply chain strain have already surfaced, citing shipment delays involving certain specialised products due to logistical constraints.
Nevertheless, he expressed confidence that industry players and logistics providers would be able to adapt and find alternative ways to maintain supply chains.
“These challenges are being faced globally. Malaysia is part of the global trading system, so naturally, we will feel some impact.
“But logistics companies will work around it. Everyone is trying to find solutions, so we remain cautiously optimistic,” he said.
Despite the potential disruption to global trade routes, Sim emphasised that Malaysia’s direct trade exposure to Iran remains relatively small, helping cushion the country from immediate economic consequences.
Total trade between Malaysia and Iran reached RM2.45 billion in 2025, comprising RM2.17 billion in exports and RM280 million in imports, accounting for just 0.09 per cent of Malaysia’s overall trade.
He added that major energy commodities such as liquefied natural gas, crude oil and petroleum products are not among the top five traded items between the two countries.
Sim also reiterated that Malaysia continues to comply with United Nations sanctions on Iran, restricting trade to approved items, including food and other essential goods.
Shipping through the strategically vital Strait of Hormuz, where about a fifth of the world’s oil supply passes, has recently been disrupted after Iran moved to shut the passage amid its conflict with the United States and Israel, raising concerns over global supply chains. — March 6, 2026
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