The Real Crisis Isn’t Just At Petrol Stations: PMO Official Sounds Alarm
With raw materials running low, there is a chance of everyday goods’ shortage hitting as early as June.
Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
Malaysians could soon face a creeping supply shock beyond rising fuel prices, with potential shortages of everyday goods looming as disruptions in global oil continue.
Senior Director of Economy and Finance at the Prime Minister’s Office, Nurhisham Hussein, stressed that while fuel supply issues tend to dominate headlines, the deeper concern lies in petrochemical shortages, which form the backbone of countless products used in daily life.
“Our entire economy depends on petrochemicals more than most people realise. Plastics, nylon, polyester, even items like cosmetics, hygiene products, diapers and toothbrushes all come from these materials,” he said during the Breakfast Grille programme, which was aired by BFM 89.9 radio station on Wednesday.
For consumers, Nurhisham said this could translate into a gradual but noticeable impact, from reduced product availability to rising prices and even job-related consequences, which could happen as early as June.
“We may start seeing production slowdowns, reduced overtime, and eventually income pressures. It won’t happen overnight, but it will build up,” he warned.
The concern now is inventory depletion with most companies having around two months’ worth of raw material stock.
Nuhisham said that while larger firms may have some buffer, small and medium enterprises (SMEs) are already under strain.
“Some SMEs only have one to two weeks of supply left. Once that runs out, production disruptions are inevitable,” he said.
He also warned that the situation bears unsettling similarities to the early days of the Covid-19 pandemic, when warning signs were visible but daily life continued largely unchanged.
“I feel like we’re in February 2020, everything seems normal, but a crisis is quietly building.”
Nurhisham was addressing the situation in the Middle East as the United States and Iran’s ceasefire failed.
He explained that the continued war is not merely about halted shipments crossing the Hormuz Strait, but it is also impacting the oil production in the Middle East.
Due to the inability to move oil through the Strait of Hormuz, producers have been forced to “shut in” wells — a process that he described as being far more complex than simply turning off supply.
“When wells are shut in, they are effectively sealed. Restarting them is not immediate, it can take at least three months, sometimes longer depending on conditions,” he said.
He added that there is an estimated 12 to 13 million barrels per day of oil production is offline.
Even if hostilities were to end today, Nurhisham cautioned that up to three-quarters of Middle Eastern oil output would remain inaccessible for months.
Compounding the issue is stranded goods, with thousands of vessels stranded in key shipping lanes which also would take months to be cleared.
“In reality, we are looking at a minimum of six months from the end of the conflict before oil supply normalises, and that timeline hasn’t even started yet,” he said, adding that full stabilisation may only occur towards the end of the year or even into 2027.
Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
