Malaysia has warned that the economic impact of the Iran-linked energy crisis will intensify from June, as fiscal buffers from subsidies and domestic gas output will begin to fade, South China Morning Post reported, citing Economy Minister Akmal Nasrullah Mohd Nasir .
He said the crisis is unfolding in stages and could persist into next year, urging households and businesses to prepare for a prolonged period of elevated costs as global oil supply remains disrupted following instability around the Strait of Hormuz, the news outlet said.
While Malaysia's economy is still projected to grow 4% to 5% this year, he warned that rising crude prices and transport disruptions are already affecting tourism, logistics and production costs. The government will expand targeted subsidies and agricultural support, while also adjusting diesel blending policies, as Brent crude rose above $130 per barrel amid the Middle East crisis, reportedly.
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