[WATCH] ‘Just in case’ approach needed for Malaysia amid world economic war: Howard Lee

KUALA LUMPUR — Malaysia must shift from reactive to proactive measures if it is to survive what Ipoh Timur MP Howard Lee has called a “world economic war,” triggered by disruptions in the Strait of Hormuz and their ripple effects across global energy and supply chains.

Speaking with A. Azim Idris, Scoop news editor, on the Scoop Insight podcast recently, Lee outlined a survival strategy urging the government to abandon blanket subsidies and implement a “strategic, sector-specific support and stimulus framework.”

He stressed the importance of moving from a “just in time” mindset to a “just in case” approach, with clear contingency plans submitted to Parliament to activate subsidies when key price thresholds are crossed.

Highlighting the interconnected nature of global markets, Lee warned that even minor disruptions to crude oil supplies could lead to shortages of fertiliser and helium, threatening food security and the functioning of MRI scanners in public hospitals.

He proposed “output-based” subsidies, tying support for farmers to actual food production and guaranteeing helium supplies for hospitals.

"We need a strategic, sector-specific support and stimulus framework. I’m not talking about flooding the market with money. No, I’m not talking about that… It needs to be output-based, not input mass stimulus," he said.

"We need to be doing things just in case, now getting approved, bring it to Parliament with a clear plan, what to subsidise, what sector, how, what to stimulate, what not to, what to support. Do it now before it’s too late, before we fail in doing things just in time."

"An output-based calculator, strategic support stimulus framework with sunset clauses, very clear, automatic trigger… instead of blanket subsidy, it’s targeted to a certain usage."

"Let’s say, for example, fertiliser. Now, instead of subsidising budget across the board, why don’t we say that there is a mechanism where if you produce this amount of food… then there’s a subsidy on that budget on what you use."

"For public hospitals, for government hospitals, MRI scanners have to continue moving. And we don’t want to have government hospitals… to have to pay, during the supply squeeze, more expensive helium so that the MRI scans can continue."

For households, Lee urged Malaysians to focus on cash flow, warning that “now is not the time for you to go and buy properties,” and to maintain liquid assets. He also recommended fuel conservation, noting that flight cancellations and rising jet fuel prices are already impacting the aviation sector.

"Focus on cash flow, right? Now is not the time for you to go and buy properties. I’m sorry, I don’t want to say it, but I have to say it… cash flow is very important, because right now, we don’t know what’s going to happen when prices are volatile."

"Do not travel unnecessarily…I don’t want to tell people how to live, but I think people should really consider… This is more for fuel conservation. It’s not about spending or not spending money. It’s about trying to control fuel usage."

However, Lee agreed with Azim's assertions that government's telling citizens to "save more" or "change your lifestyle" is often "tone deaf" because, as the news editor pointed out, that many Malaysians do not have the "luxury of saving" and are already burdened by things such as long-term car loans and 35-year mortgages.

Lee identified tourism, leisure, hospitality, and oil and gas as sectors most at risk of job losses, while predicting that insurance companies would fare best. He suggested the crisis, which could last up to two years due to damaged oil infrastructure, should accelerate Malaysia’s transition to greener energy, including greater investment in public transport.

Despite his warnings, Lee expressed confidence in the government’s handling of the crisis, praising its efforts to “cushion the blow” and describing policy implementation as “fantastic.”

"I’m very confident of the competency in policy making and the plan making and the implementation of it."

He did, however, criticise government communication as overly “reserved,” calling for greater transparency and honesty to ensure Malaysians are fully aware of the situation.

"Malaysians can handle the truth," he said. "We need to tell people the whole truth so that we can be in it together."

Ultimately, Lee conveyed cautious optimism, crediting the government for maintaining a degree of normalcy despite the global turmoil.

"The brilliance shown in the current handling of the crisis can be translated into the long-term solutions required as the situation progresses. If the government continues with this level of competence, the nation will be okay despite the severity of the war." - April 23, 2026

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