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2026-05-25 21:41:10
[Malaysia Affected by Middle East Conflict: Unemployment Up 21% in April, Fertilizer Prices Surge 45.5%, Agricultural Exports Expected to Decline 13.5%] ⑴ Malaysia's Minister of Economic Affairs stated on Monday that the country is feeling the economic ripple effects of the Middle East conflict—rising energy prices, increased logistics costs, and supply chain disruptions are impacting multiple industries. ⑵ Data shows that 7,057 workers lost their jobs in April, a 21% increase from March, and the logistics and aviation industries are also facing increasing pressure. Agricultural commodity producers are also under pressure, with shipping costs on Middle East routes surging by 50% to 80%, fertilizer prices rising by as much as 45.5%, and agricultural pesticides increasing by 37.5%. ⑶ Plantation and machinery operating costs rose by 10% to 30%, rubber replanting costs increased by 46% to 55%, and palm oil and chemical production costs rose by up to 30%. Agricultural trade volume in the first quarter declined by 14.7% due to weaker exports of cocoa, rubber, palm oil, pepper, and timber products. (4) From a trading psychology perspective, the Minister of Economic Affairs predicts that agricultural exports will decline by 13.48% overall in 2026, while imports are expected to decline by 3.28%. This data reflects that the indirect impact of the Middle East conflict on Southeast Asian open economies is accelerating through three channels: shipping, energy, and fertilizers. As a major global supplier of palm oil and rubber, Malaysia's rising supply-side costs may further push up prices of downstream consumer goods.
