KUALA LUMPUR: Malaysia’s e-commerce and logistics ecosystem is beginning to feel the strain from the ongoing conflict in West Asia, as rising energy prices and shifting trade routes push up costs and add pressure on delivery timelines.
Industry players say the impact, while still evolving, is already filtering through supply chains in the form of higher freight, fuel and input costs, alongside increasing uncertainty in global logistics networks.
Malaysian International Chamber of Commerce and Industry (MICCI) president Christina Tee said the effects are largely indirect but significant, reflecting Malaysia’s position as an open, trade-dependent economy.
“The ongoing conflict in West Asia is beginning to affect Malaysian businesses mainly through higher energy prices and global supply chain uncertainty,” she said, noting that developments around key shipping routes such as the Strait of Hormuz are driving up fuel, freight and insurance costs.
Within the e-commerce and logistics space, Tee said the most visible impact so far has been rising operational costs and some delivery delays, particularly for cross-border trade, as shipments are rerouted and logistics conditions become more fluid.
Cost pressures are also intensifying across the value chain.
Tee pointed to sharp increases in certain input materials, including commodity resins such as polypropylene, which have surged by about 75% from US$950 per tonne to US$1,720 (RM6,880) per tonne.
At the same time, disruptions to supplies from the Gulf region are affecting packaging-related inputs such as adhesive tapes, inks and solvents, raising costs for fast-moving consumer goods and food products.
“These sharp increases are not only affecting margins but are also significantly impacting business cash flow,” Tee said.
While some companies are absorbing part of the higher costs in the short term, Tee noted that this is unlikely to be sustainable, with cost adjustments already being shared along the supply chain and gradually passed on to consumers.
On the ground, logistics players are navigating a more complex operating environment.
DHL Express Malaysia and Brunei managing director Julian Neo said the conflict is disrupting both passenger and cargo air traffic, with trade flows increasingly being diverted through longer and more complex routes.
“Trade isn’t stopping; it is being rerouted,” he said, adding that the company is leveraging contingency plans, alternative routing and multimodal transport solutions to manage disruptions.
Despite the challenges, Neo said, DHL has not observed structural disruptions to shipments involving Malaysia at this stage, although operations have become more dynamic and require closer coordination and real-time adjustments.
“International routes have become increasingly dynamic, which means our operations require much closer coordination and more frequent, real-time adjustments,” he said, stressing that the company remains fully operational and continues to deliver reliably.
However, rising fuel and energy costs remain a concern for the industry. Neo noted that, where contractual agreements allow, such increases may be passed on to customers through established surcharge mechanisms, a standard practice in the logistics sector.
To maintain service reliability, DHL is closely monitoring airspace availability, airport operations and cross-border conditions, while keeping alternative routes and gateways on standby. This network-wide visibility enables the company to shift volumes, adjust routes and combine transport modes as needed, ensuring continuity amid rapidly changing conditions.
For businesses more broadly, Tee said the current environment is prompting a stronger focus on cost management and supply chain resilience.
Companies are refining sourcing strategies, building inventory buffers and adjusting logistics arrangements to cope with volatility.
Looking ahead, MICCI said coordinated policy support may be needed if pressures persist. Tee suggested measures such as targeted tax support, temporary loan repayment flexibility and assistance in facilitating alternative sourcing.
“If these pressures persist, there may also be a need to consider reintroducing targeted support measures similar to those implemented during the Covid-19 period,” she said.
As geopolitical risks continue to evolve, industry players expect the coming months to test the resilience of Malaysia’s e-commerce and logistics ecosystem, with cost management and adaptability emerging as key priorities
