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Ceasefire offers little relief as Middle East damage continues to strain global economy

Malaysia is expected to continue feeling the economic fallout of the Middle East conflict despite a temporary ceasefire, as damaged energy infrastructure and shipping bottlenecks delay recovery

6:10 PM MYT

 

KUALA LUMPUR – Communications Minister Datuk Fahmi Fadzil has warned that Malaysia will continue to face economic pressure from the Middle East conflict despite a recently agreed two-week ceasefire, citing extensive damage to the region’s energy ecosystem and infrastructure.

Speaking at a weekly media conference following a briefing with the Cabinet and the National Economic Action Council (MTEN), Fahmi stressed that a temporary halt in hostilities does not translate into immediate economic recovery.

“The most important thing for Malaysians to understand is that although temporary peace has been achieved, we will continue to feel the impact of the conflict,” he said, noting the widespread damage to critical ecosystems and infrastructure.

Fahmi highlighted that restoring these facilities will be a complex and time-consuming process.

“We have been informed that repairing storage tanks and pipelines for gas and crude oil will take time. Some may require several months, while others could take years to fully recover,” he said.

A major factor contributing to the slow recovery is congestion at the Strait of Hormuz. Fahmi revealed that while the strait typically handles more than 200 vessels daily, around 2,000 ships are currently delayed or stranded in the area.

“The movement of ships through the strait and open seas takes time,” he explained.

“These are massive vessels carrying highly flammable fuel. They do not move quickly, and whether they can be cleared soon remains uncertain.”

Fahmi emphasised that the government’s immediate priority is maintaining domestic stability.

“The most important thing for Malaysians is that we overcome these supply challenges, and this remains a top priority for the Prime Minister,” he said. – April 8, 2026

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