MALAYSIA is intensifying preparations for the economic and security fallout from escalating tensions in West Asia, as Prime Minister Datuk Seri Anwar Ibrahim renewed calls for an immediate return to diplomacy following a fragile pause in hostilities.
Putrajaya said it would adopt a coordinated, whole-of-government response to manage the potential impact of a prolonged conflict, with the National Security Council (NSC) convening a special session to assess risks after nearly two weeks of instability in the region.
The council said further measures would be deliberated at a special session of the National Economic Action Council (NEAC), signalling concern over spillover effects on global markets and domestic conditions.
"Malaysia welcomes the latest developments which have seen all parties involved halt attacks for five days, and views this window as an opportunity for serious and sincere negotiations.
"The meeting noted that the latest developments have led to a decline in international oil prices," the statement said.
"On Tuesday, the Prime Minister held telephone conversations with the leaders of New Zealand, Japan, Bahrain and the United Arab Emirates (UAE).
"Malaysia has several key attributes that enable it to play this role. For example, with the exception of Israel, Malaysia maintains good relations with all the major parties involved in this issue, while its consistent, neutral and forthright stance has earned it respect," the statement added.
"I express deep concern over the prolonged tensions and their implications for regional security and the well-being of the people, and extend my condolences for the loss of lives and damage to property resulting from the retaliatory attacks," he said.
The leaders also exchanged Aidilfitri greetings and expressed hopes for peace and stability.
The current escalation follows joint military strikes by the United States and Israel on Iran on Feb 28, prompting retaliatory drone and missile attacks by Tehran.
Those strikes targeted Israel as well as Jordan, Iraq and several Gulf states hosting United States military assets, resulting in casualties, infrastructure damage and disruption to global markets and aviation.
Malaysian authorities warned that the evolving crisis could have far-reaching economic implications, even as they continue to press for restraint and a negotiated settlement. - March 25, 2026
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