Backbenchers urge the government to prepare an action plan to address the economic impacts resulting from tensions in the Middle East
KOTA KINABALU; The Backbenchers of the Sabah State Assembly (DUN) have reminded the government to develop an immediate action plan to confront the global economic effects following the escalating tensions in the Middle East.
The chairman of the organization, Datuk Masiung Banah, emphasized that the federal government should have already outlined short- and medium-term measures in response to the drastic rise in global crude oil prices.
He said that when oil prices soar, the costs of essential goods, including food items, are bound to increase.
“If the government delays action without an initial plan, ultimately traders will take advantage, and the rise in prices of daily necessities will become uncontrollable.
“The sharp increase in global crude oil prices has the potential to trigger double inflation effects, which will ultimately raise the cost of living for the people.
“The geopolitical tensions from the conflict between the United States, Israel, and Iran have disrupted major global trade routes in the Strait of Hormuz, creating fiscal impacts from rising raw material costs in Malaysia,” he said in a statement today.
Masiung, who is also the state assemblyman for Kuamut, urged the Ministry of Finance and the Ministry of Economy of Malaysia to implement fiscal policies in response to the ongoing war.
He noted that the effects of fuel and import price increases are already being felt among the populace.
He stressed that if the war continues, the government must be prepared with additional fiscal plans to ensure that the citizens are not burdened.
He anticipates that financial pressures on the government will also increase, including the possibility of a growing budget deficit.
The chairman of the Sedco Group remarked that the situation becomes more critical as diesel prices rise, leading to increased transportation and logistics costs, which ultimately impact the prices of goods in the local market.
