PETALING JAYA: Elevated energy prices triggered by the war in the Middle East may fuel inflation and cloud Malaysia’s trade outlook, although the country is a net energy exporter. MBSB Research cautioned that rising oil and gas (O&G) prices are beginning to strain supply chains and could feed into broader inflation. “We forecast the moderate price increase in inflation will continue throughout the first quarter, driven by both supply and demand factors,” it said, noting that renewed cost pressures from higher energy prices could weigh on local producers. On the external front, CIMB Research said rising geopolitical tensions in the Middle East are beginning to reshape trade dynamics, with the risk of a near-term deterioration in the trade balance for Malaysia as higher energy prices present mixed implications. “While higher energy prices would nominally benefit Malaysia as a net O&G exporter, the surplus largely disappears once refined petroleum products and chemicals are included,” it said.

Source: The Star March 24, 2026 11:05 UTC