Kuala lumpur: The government is reminding the public and businesses not to become complacent or underestimate the economic and supply chain impacts following Iran's declaration of the renewed closure of the Strait of Hormuz.

According to BERNAMA News Agency, Economy Minister Akmal Nasrullah Mohd Nasir emphasized that despite reports of a small number of commercial vessels continuing to pass through the strait, this should not provide a false sense of comfort to either the government or the public. He highlighted the ongoing exposure of the economy to geopolitical instability and disruptions abroad.

The minister noted that all parties, including the government, public, and businesses, need to be vigilant and prepared for the potential impacts on oil prices, transportation cost pressures due to increased shipping transit times, global raw material input prices, and related supply and food price issues. His comments were made in a video posted on his official TikTok account.

Akmal Nasrullah addressed the renewed closure of the Strait of Hormuz, which followed a series of strikes launched by the United States on Iran on July 8. He warned against complacency and stressed the need to adapt to the economic challenges stemming from ongoing conflicts and military strikes in West Asia.

Furthermore, he expressed concern over the mounting global supply chain pressures that industries might face if the crisis extends, affecting various sectors and, ultimately, consumers. He explained the complexity of supply chains, using the example of potential pressure on plastic manufacturers that could affect industries such as food packaging, electronics, automotive, medical devices, construction, agriculture, and manufactured exports.

The minister urged a comprehensive approach to managing the supply chain ecosystem to prevent business operation disruptions and reduce reliance on external situations.