Malaysia

Tengku: Zafrul: Malaysia equipped for economic fallout from Middle East conflict

Government monitoring oil prices and subsidy implications closely as geopolitical tensions threaten global energy markets

Updated 6 months ago · Published on 09 Mar 2026 8:37AM

Tengku: Zafrul: Malaysia equipped for economic fallout from Middle East conflict
Government must ensure keep fundamentals of the national economy remain strong, as reflected by economic growth - March 9, 2026

THE government says it is preparing for possible economic repercussions stemming from the escalating conflict in the Middle East, including potential pressure on the country’s petrol subsidy system.

Senior Political Adviser to the Prime Minister Tengku Datuk Seri Zafrul Abdul Aziz said fluctuations in global oil prices were not unusual, noting that crude had previously surged to around US$100 per barrel.

He said both the Finance Ministry and the Economy Ministry had already taken steps to prepare for various scenarios linked to the evolving geopolitical situation.

Tensions in the Middle East, he said, inevitably have ripple effects across many countries, including Malaysia, prompting the government to monitor developments closely.

"We are following developments every hour, every minute. At the same time, the government must ensure three things — focusing on programmes that are already being implemented because the fundamentals of the national economy remain strong, as reflected by economic growth.

"We must also ensure that this economic growth can be felt by the people through increased investment and strong gross domestic product performance," he told Bernama during the Raikan Kasih Ramadan programme with orphans and underprivileged families.

Zafrul said that as a neutral country practising an open economic policy, Malaysia must also ensure that its regional relationships remain stable, including with countries in the Middle East.

In a separate development, he expressed gratitude to Prime Minister Datuk Seri Anwar Ibrahim for appointing him as Senior Political Adviser.

Zafrul said the appointment, which took effect last Thursday, allowed him to meet officials at the Prime Minister’s Department on Friday to discuss the scope of his responsibilities.

"My focus at the moment is to assist the government from a political standpoint and on issues that are relevant to the government, particularly matters affecting the people and the economy," he said.

Earlier, Zafrul also spent time with 155 orphans and underprivileged children, helping them purchase festive clothing for Hari Raya before presenting cash gifts and contributions to Rumah Kasih Nurul Hashanah and the Pertubuhan Kebajikan Anak-Anak Yatim dan Asnaf Qaseh Ibu. - March 9, 2026

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