KLANG, Jan 19 — Transport Minister Anthony Loke today said his ministry has not received feedback from importers warning about the potential impact of the Red Sea Crisis on Malaysia.
He said the ministry was aware of the need to proactively mitigate supply disruptions that could affect the cost of living in Malaysia and was monitoring the situation.
“However, some industry players have mentioned in the press that the current crisis is manageable for the time being,” he said at a press conference today, adding that he hoped the situation would only be temporary.
The Red Sea crisis erupted after Houthi militants in Yemen began targeting vessels in retaliation to Israel’s war against Hamas in Gaza, which resulted in access disruption at the Suez Canal, the shortest shipping route connecting Asia and Europe.
Approximately 80 per cent of ships have opted to reroute through the Cape of Good Hope, avoiding the Red Sea due to recent Houthi militia attacks. This strategic move, while preventing major disruptions reminiscent of the Covid-19 era, is not without its challenges.
The Shipping Association of Malaysia (SAM) has said trade routes to the United States and Europe were the most affected and freight rates have doubled or more, driven by extended travel times, supply chain disruptions, and additional operational costs.
However, the effect on the Malaysian economy has been cushioned as a result of the country’s increased trade with China over the West.
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