Energy Crisis: Sea And Land Transport Sectors Remain Relatively Stable - Akmal Nasrullah

KUALA LUMPUR, April 14 (Bernama) -- Malaysia’s sea and land transport sectors remain relatively stable, particularly in cargo handling and public transport passenger movement, despite the ongoing global energy crisis.

Economy Minister Akmal Nasrullah Mohd Nasir said, however, that the aviation and tourism sectors are already showing signs of strain.

He noted that 55 weekly flights involving six airlines were cancelled between March 23 and 28, while tourist arrivals from March 1 to 25 declined due to the crisis.

He said the situation is compounded by projections of a drop of 1.5 million air passengers from West Asia in 2026.

“The West Asia conflict has caused major disruptions to global energy flows, and we are feeling the spillover effects. Although a two-week ceasefire was agreed on April 8 between the United States and Iran, there are no clear signs that the conflict will end soon.

“On April 13, peace talks failed to reach a conclusive resolution, and the US announced maritime sanctions on Iranian ports. While technically targeting traffic to those ports, the move adds uncertainty and keeps shipping flows through the Strait of Hormuz at constrained levels,” he said during a televised briefing on the energy crisis on Tuesday.

Akmal Nasrullah said that as long as key global energy routes remain exposed to security risks, insurance premiums, freight costs and petroleum prices are likely to stay elevated beyond normal spot price movements.

“Transport costs have nearly doubled, while insurance premiums have risen by up to 16 times per voyage. This matters because higher logistics costs feed through to diesel and petrol prices, production inputs and ultimately the cost of living,” he said.

On the labour market, the minister said more visible impacts are expected in the second quarter of this year, or beginning in June if the conflict persists, despite an overall decline in job losses from January to early April.

“This shows the crisis has a lag effect. Today, we see cost pressures; weeks or months later, we see the impact on jobs and incomes.

“The government, through the National Economic Action Council, is assessing appropriate mitigation measures to ease public concerns,” he said.

-- BERNAMA