KUALA LUMPUR, MALAYSIA March 25, 2026 – Are prices of goods starting to rise again? MIDA Chairman Datuk Seri Tengku Zafrul Tengku Abdul Aziz has explained the real reasons behind the increase in the cost of living and the proactive steps taken by the government to protect the people.
In a video uploaded on the X platform yesterday, Tengku Zafrul stated that the escalating conflict in West Asia since late February — involving Iran, Israel and global powers — is now having a direct impact on Malaysia, even though it may seem distant.
“This region controls approximately 20 percent of the world’s daily oil and gas reserves through the Strait of Hormuz. When that route is disrupted, global oil prices rise immediately. The effects are chain reactions: production costs increase, and ultimately, the prices of goods also go up,” he said.
According to him, the initial effects are already visible:
– Disruptions in imports and sea transportation have caused higher costs and longer delivery times.
– Certain sectors, such as iron and steel, have begun halting new supplies due to surging raw material costs.
– Pressure on government subsidies has increased sharply. For example, the RON95 subsidy jumped from RM700 million to RM3.2 billion in less than a week.
Tengku Zafrul stressed that the government is not sitting idle. He said daily monitoring of oil prices, supply chains and financial markets is being carried out by the Ministry of Finance, the Ministry of Economy and Bank Negara Malaysia.
“The government is actively engaging with key industry players to ensure sufficient domestic supply. Subsidies are being maintained so that the people do not have to bear the full market prices. We are acting swiftly — we are not adopting a wait-and-see approach,” he emphasised.
He also advised the public not to panic. “Buy only what you need. Manage your spending more carefully. Most importantly, stay calm but vigilant.”
In conclusion, Tengku Zafrul expressed confidence that Malaysia can face this challenge with proper management.
“What is happening in West Asia is not a distant issue. It directly affects oil prices, the cost of living and global economic stability. However, with the right measures, God willing, we will get through this well,” he said.
The full video of Tengku Zafrul’s statement can be viewed in the original X post: https://x.com/tzafrul_aziz/status/2036422826761306589
About The Author
