Kota Kinabalu: The Sabah Assembly Backbenchers urged the government to prepare an immediate action plan to address potential global economic impacts following escalating tensions in the Middle East.
The group’s Chairman, Datuk Masiung Banah, said the federal government should have already outlined short- and medium-term measures in response to the sharp rise in global crude oil prices.
He noted that surging oil prices inevitably lead to higher costs for essential goods, including food items.
“If the government is slow to act and fails to implement an early action plan, traders may take advantage of the situation, and price increases for daily necessities could become uncontrollable. The sudden rise in global crude oil prices has the potential to trigger a double inflationary effect, ultimately increasing the cost of living for the people,” he said in a statement.
Masiung, who is also Kuamut Assemblyman, urged the Ministry of Finance and the Ministry of Economy to implement appropriate fiscal policies in response to the conflict.
He highlighted that the geopolitical tensions and war involving the United States, Israel, and Iran have disrupted major global trade routes at the Strait of Hormuz, creating fiscal implications through rising raw material costs in Malaysia.
According to him, the impact of rising fuel and imported goods prices is already being felt by the public.
He stressed that if the conflict continues, the government must be prepared with additional fiscal plans to ensure the rakyat are not overly burdened.
Masiung, who also chairs the Sedco Group, warned that the situation could worsen if diesel prices rise, as higher transportation and logistics costs would eventually push up the prices of goods in the local market.
