MALAYSIAN households are likely to face higher prices and renewed inflationary pressures in the second half of the year as escalating global energy uncertainty continues to ripple through supply chains and industrial sectors, an economist has warned.
Universiti Kuala Lumpur Business School economist Associate Professor Major Dr Mohd Harridon Mohamed Suffian said the impact of prolonged tensions in West Asia and instability in global oil supplies would increasingly be felt by consumers after June, although government intervention was expected to soften the blow.
He said Putrajaya had already introduced mitigation measures aimed at limiting the effect of rising operational costs on businesses and households through targeted subsidies and fiscal adjustments.
According to Mohd Harridon, the government has reduced parts of its federal expenditure to allow fiscal resources to be redirected towards supporting selected industries through subsidy mechanisms designed to prevent excessive price increases.
However, he cautioned that the assistance would not be sufficient to fully absorb the rising costs confronting multiple sectors of the economy.
“Among the main challenges are difficulties in obtaining raw materials, logistical constraints, rising transportation costs and growing financial pressure among manufacturers.
“The agricultural sector is among the hardest hit as many farmers are struggling to continue operations because of rising diesel prices.
“Although the government introduced the ‘Fleet Card’ system for subsidised diesel purchases, there are still industry groups that are unable to benefit from the initiative, resulting in certain product prices potentially increasing at a critical level,” he said.
Mohd Harridon warned that persistent inflation could trigger broader economic consequences if left unchecked, particularly as households continue to grapple with escalating living costs and weaker purchasing power.
He said uncontrolled inflation would not only burden consumers but could also undermine national economic growth by reducing overall economic efficiency and domestic spending capacity.
Commenting on consumer preparedness, he urged Malaysians to adopt more disciplined spending habits and monitor price movements carefully.
“Consumers are also encouraged to report to the authorities if they find that products are being sold at unreasonable prices.
“Consumers need to practise structured spending and avoid excessive purchases so that family finances remain stable throughout the month.
“I expect tensions in the Strait of Hormuz to continue placing pressure on the global oil market, thereby keeping oil prices at elevated levels,” he said.
Mohd Harridon also called on the government to intensify efforts to develop alternative energy sources in order to reduce Malaysia’s dependence on external geopolitical conflicts and volatile global fuel markets. - May 9, 2026
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