PETALING JAYA: The Federation of Malaysian Manufacturing (FMM) has called on the government to set up an export crisis response task force to tackle potential disruptions to global shipping caused by the Iran-US-Israel conflict and instability around the Strait of Hormuz.
FMM president Jacob Lee said countries like India and South Korea had already implemented similar coordination mechanisms to protect export flows amid global trade disruptions.
He said such a task force would serve as a dedicated government-industry platform to provide real-time intelligence on freight rates and shipping routes, coordinate government and industry responses, and introduce support measures for exporters facing higher costs or shipment delays.
“The task force should be chaired by the investment, trade and industry ministry, and bring together relevant agencies, including Matrade, Mida, the transport ministry, port authorities, the finance ministry, customs, and Bank Negara Malaysia, with FMM representatives,” he said in a statement today.
Lee said Malaysia’s manufacturing sector faced direct exposure to disruptions in global shipping routes, as more than 90% of trade was transported by sea.
He also noted an increase in shipping costs and risks following emergency freight surcharges introduced by major shipping lines for Gulf routes.
“War-risk insurance premiums have also risen sharply,” he said, adding that freight rates during the Red Sea crisis in 2024 rose two to three times within weeks while vessel diversions extended transit times by up to two weeks.
He said rising global oil prices could further increase industrial energy and logistics costs across the manufacturing sector.
Although Gulf Cooperation Council countries are not Malaysia’s largest export destination, he said the region remained an important secondary market and a key transhipment hub for cargo heading to Africa, Central Asia, and parts of Europe.
“Disruptions to Gulf ports, therefore, affect not only direct exports to the region but also shipments destined for other markets,” he said.
On Monday, Public Investment Bank said the rising US-Israel-Iran conflict had added a geopolitical risk premium to global oil markets as shipping in the Gulf faced major disruptions.
The research house said tanker traffic through the Strait of Hormuz had largely stalled, with many vessels waiting outside the Gulf due to security concerns.
It warned that if these disruptions continued, what looked like a temporary delay could become a serious supply shortage.
