Kota Kinabalu: Global tensions involving Iran, the United States and Israel are beginning to disrupt Malaysia’s e-commerce sector, while a new work-from-home (WFH) policy could compound economic pressures on urban businesses, industry leaders warned.
Malaysia Digital Chamber of Commerce (MDCC) Sabah Chapter advisor Tony Hsing said the ongoing conflict is straining global logistics networks and pushing up energy prices, with direct consequences for businesses reliant on imported goods.
Disruptions to key shipping routes and rising fuel costs have already contributed to longer delivery timelines and higher operational costs across Malaysia’s digital commerce ecosystem. “This is a wake-up call for e-commerce businesses.
The era of relying on a single supply source is no longer sustainable,” Hsing said, urging companies to diversify supply chains and adopt technology-driven solutions to manage uncertainty.
He said small and medium enterprises (SMEs) face the greatest exposure, given their vulnerability to cost pressures and supply inconsistencies.
He called on businesses to move away from just-in-time inventory models and explore sourcing alternatives within Asean and other stable markets.
He cautioned that global supply chains could take three to six months to stabilise even if the ceasefire talks between US and Iran succeed.
Despite short-term challenges, he said Malaysia including Sabah is well-placed to benefit from global supply chain shifts, citing the country’s strategic location and expanding digital infrastructure.
On the domestic front, Emeritus Chairman of the Malaysia Chamber of Commerce Dr Chris Daniel Wong warned that widespread WFH arrangements could introduce additional economic headwinds, particularly for businesses in urban centres.
The WFH initiative, set to take effect April 15 for employees across government ministries, agencies, statutory bodies and government-linked companies (GLCs), was introduced amid rising fuel costs linked to the Middle East conflict.
While the policy is projected to generate fuel subsidy savings of about RM169 million a month, Wong argued the broader economic fallout could far exceed those gains.
“Reduced urban consumption, particularly in the Klang Valley, could result in monthly losses ranging between RM320 million and RM495 million approximately 2.9 times higher than the projected savings,” he said.
Factoring in economic multiplier effects estimated between 0.75 and 1, Wong said the total economic contraction could reach between RM480 million and RM1 billion monthly.
The food and beverage sector could absorb monthly losses of RM100 million to RM180 million, he estimated, while retail may see declines of RM75 million to RM125 million.
Petrol stations stand to be among the hardest hit, with projected monthly losses of RM150 million to RM250 million, given their low-margin, high-volume business model and fixed operating costs.
Public transport and ride-hailing services could record losses of RM60 million to RM90 million per month, while parking and toll revenues may fall by RM25 million to RM40 million.
Wong renewed his call for a six to 12-month targeted loan moratorium for businesses facing reduced sales because of lower urban economic activity.
“With the right balance between policy support and business agility, Malaysia can strengthen its position in the evolving regional and global economic landscape,” Wong said.
