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MALAYSIA must be prepared to face impacts such as more expensive imports following the conflict in the Middle East, said Malaysian Investment Development Authority (MIDA) chairman Tengku Datuk Seri Zafrul Abdul Aziz.
He said the nation’s high-value trade is vulnerable as exports and imports transit through the region’s airspace.
Several Malaysia Airlines flights were forced to turn back because airspace in the Middle East was closed or restricted due to escalating tensions, he noted.
“When flight routes become unsafe, airlines are forced to reroute or cancel services. This means longer journeys to Europe, higher fuel costs and potential delays in air cargo,” he explained.
Tensions in the Middle East escalated when the United States and Israel launched attacks on Iran on Saturday, sparking retaliatory strikes on Israeli territory and US military facilities in the Middle East.
Tengku Zafrul said the oil market also reacted quickly as Iran is located near one of the world’s most critical oil routes.
“When the conflict intensifies, oil prices surge as markets fear disruptions to oil supply. Hence, oil prices rise, logistics costs increase, and (goods) prices also go up,” he said.
He stressed that the scale of the impact depends on how long the conflict continues.
“If it is brief, the effects will be limited. But if it persists, Malaysia must be prepared,” he said.
Tengku Zafrul said that when the world is unstable, investors tend to seek safe-haven assets such as the US dollar and gold, which in turn puts pressure on the ringgit through capital outflows.
This capital outflow consequently puts downward pressure on the ringgit’s exchange rate.
“When the ringgit comes under pressure, imports become more expensive,” Tengku Zafrul noted.
The ultimate impact on Malaysians’ cost of living hinges on the conflict’s duration.
“If it drags on, we must be prepared.”– March 2, 2026
