Malaysia

Cabinet weighs targeted job support as global supply shocks strain economy

Putrajaya signals imminent measures to assist those left out of the labour market while intensifying scrutiny of petrochemical supply disruptions and broader economic risks linked to global tensions

Updated 6 months ago · Published on 22 Apr 2026 6:39PM

Cabinet weighs targeted job support as global supply shocks strain economy
Review of vulnerabilities in petrochemical supply chains following disruptions linked to the closure of the Strait of Hormuz is being looked into - April 22, 2026

THE MADANI Government is preparing to roll out targeted measures to support individuals still excluded from employment opportunities, as the government grapples with mounting economic pressures stemming from global supply disruptions.

Communications Minister Datuk Fahmi Fadzil said the issue was raised at a Cabinet meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim on Wednesday, with discussions centred on identifying the scale and profile of those affected.

“Yes. Possibly (additional measures will be announced) next week. It was briefly discussed (at the Cabinet meeting) today.

“But it was more on some figures regarding identifying the number involved,” he said at a post-Cabinet briefing on Wednesday.

He was responding to questions on whether the announcement would coincide with Labour Day on May 1.

Alongside labour market concerns, Fahmi said the government is intensifying its review of vulnerabilities in petrochemical supply chains following disruptions linked to the closure of the Strait of Hormuz.

The matter was discussed at the National Economic Action Council meeting, with further analysis underway by the Ministry of Economy and the Ministry of Investment, Trade and Industry.

He said the government is paying close attention to the knock-on effects of supply constraints, noting that disruptions extend beyond plastics to critical inputs such as ammonia, urea and helium, which underpin a wide range of industries.

“The government is aware, understands and is concerned about the impact on supply chains due to the closure of the Strait of Hormuz. Additional assessments are still required, and the findings are expected to be discussed again at next week’s MTEN meeting,” he said.

As an immediate response to emerging pressures, Fahmi said the Association of Banks in Malaysia has moved to support businesses, allowing small and medium enterprises, including micro enterprises, to engage with commercial banks for potential financial relief.

He said the measure is aimed at safeguarding operational continuity, particularly in sectors such as manufacturing and food packaging that are vulnerable to prolonged disruptions in raw material supply.

Fahmi added that other policy considerations remain under review, including a proposal by the Malaysian Media Clubs Alliance for a 300-litre BUDI RON95 fuel quota for media practitioners, which is expected to be deliberated at a future MTEN meeting.

He said requests involving the Communications Ministry, including those from the creative industry, have also been raised for further consideration as the government refines its broader economic response. - April 22, 2026

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