Malaysians urged to tighten their belts as Iran war fallout starts to bite

Malaysia’s government has urged the public to be ready to tighten their belts over an extended period, with the full effects of the energy crisis triggered by the Iran war expected to kick in as soon as June after the country’s economic buffers run their course.Domestic gas production and costly fuel subsidies have so far shielded the country’s population of 34 million from most of the fallout from the war, which has choked supply for 25 per cent of global seaborne oil trade and nearly a fifth of global liquefied natural gas exports – much of which is bound for Asia.But with crude oil supplies expected to last only through May, the government said the country needed to accept that the crisis would keep oil prices high for the foreseeable future.An illustration shows the Strait of Hormuz, which carries roughly a quarter of global seaborne crude oil and one-fifth of all LNG shipments. Photo: Reuters“We need to understand that this crisis is different from usual shocks because the effects can come in stages and last until next year,” Economy Minister Akmal Nasrullah Mohd Nasir said in a live televised address on Tuesday.