THE National Economic Action Council (MTEN) has intensifed efforts to strengthen energy security, food resilience, border protection and industrial competitiveness as tensions in West Asia continue to unsettle global markets.
Economy Minister Akmal Nasrullah Mohd Nasir said the MTEN had reviewed the latest developments affecting global supply chains, noting that renewed concerns over the conflict in West Asia had triggered fresh volatility in international energy markets and heightened risks to critical trade routes.
The council was informed that average Brent crude prices climbed 5.9 per cent from US$69.82 a barrel to US$73.94 between July 6 and 10, reflecting growing market concerns over the security of the Strait of Hormuz, a strategic maritime passage through which a significant proportion of the world's energy supplies transit.
Over the same period, liquefied natural gas prices rose 7.9 per cent from US$16.05 to US$17.31, while coal prices remained broadly unchanged at around US$128.86 per tonne.
“Malaysia’s petroleum supply remains stable and sufficient until December 2026, supported by diversified imports, optimised domestic production and strengthened long-term supply agreements,” he said.
Electricity demand in Peninsular Malaysia also increased by 2.5 per cent between July 6 and 11, reaching 20,832 megawatts compared with 20,325 megawatts the previous week. Despite the increase, Akmal said the country's electricity reserve margin remained sufficient to ensure uninterrupted power supply.
The government said it would continue monitoring global energy developments closely while implementing proactive measures to strengthen supply resilience and reduce Malaysia's exposure to external shocks.
Food security also remained a central priority, with MTEN informed that national buffer stocks of rice were sufficient to meet domestic demand for six months.
Akmal said the government would maintain the existing price of Local White Rice while continuing efforts to ensure essential food items remained affordable and readily available to consumers despite external pressures.
He acknowledged that paddy farmers continued to face growing challenges arising from unpredictable weather conditions and rising production costs, prompting the government to expand assistance for the agricultural sector.
“As of July 12, RM45.98 million had been distributed under the Paddy Farmers Ploughing Incentive Programme, benefiting 118,908 farmers across Peninsular Malaysia,” Akmal said.
The government is also taking measures to mitigate potential increases in fertiliser prices by diversifying supply sources, broadening assistance schemes for farmers and enhancing oversight of agricultural input markets.
“A Fertiliser Bill is expected to be tabled in early 2027 to enhance governance, quality standards and transparency within the fertiliser market,” he said.
It added that continuous monitoring of weather conditions and agricultural risks would remain essential to maintaining domestic food production and safeguarding long-term food security.
Beyond economic resilience, MTEN also reviewed emerging border security concerns involving refugee management, human trafficking, document abuse and illegal cross-border movements.
Akmal said enforcement operations targeting smuggling syndicates, trafficking networks, fraudulent documentation and unlawful border crossings would be intensified through closer cooperation among enforcement agencies.
The MTEN also assessed the growing pressures confronting Malaysia's manufacturing sector as businesses contend with shifting global supply chains, higher operating costs and persistent geopolitical uncertainty.
Manufacturers are facing rising raw material prices, escalating logistics costs, tighter cash flow and increasingly unpredictable delivery schedules, with many companies experiencing knock-on effects on contracts, investment decisions and workforce planning.
The plastics industry, a key component of Malaysia's manufacturing base, recorded sales of RM62.69 billion in 2025, down from RM64.78 billion in 2024. Packaging remained the industry's largest segment, accounting for 45 per cent of total sales, followed by electrical and electronics applications at 29 per cent.
The government warned that prolonged weakness in the plastics sector could have broader implications for strategically important industries, including food packaging, electrical and electronics manufacturing, automotive production, medical devices, construction, agriculture and export-oriented manufacturing.
Following recommendations submitted by the Malaysian Plastics Manufacturers Association on improving industry cost structures and competitiveness, the Ministry of Investment, Trade and Industry and the Ministry of Economy will evaluate the proposals.
The review will take into account industry requirements, fiscal considerations and Malaysia's long-term competitiveness as global production networks continue to evolve.
The government reaffirmed that strengthening resilience across the energy, food, security and manufacturing sectors would remain a national priority to ensure Malaysia can withstand external disruptions while sustaining long-term economic growth. - July 13, 2026
