Treading the economic fallout from a Middle East on fire

Today, as the Strait of Hormuz chokes on conflict and oil prices convulse, Malaysia is also feeling the heat. The question is how deep the scars will be and whether our economic resilience is a tangible shield. The most immediate impact is being felt in the ledger books of our small and medium-sized enterprises. An official survey delivers a sobering statistic: 63.9 per cent of Malaysian companies expect to be hit. This is about shipment delays, the cancellation of orders, and the suffocating rise in ocean freight and insurance costs. For the nearly 40 per cent of our exporters actively trading with the UAE and Saudi Arabia, the Red Sea and the Gulf are no longer just trade routes; they are risk corridors.

Original source: New Straits Times