“The impact of this latest AFA will not be as significant as fuel price increases, unless the rebate is sustained or reduced further. He noted that energy cost shocks mainly affect transport-intensive sectors, as fuel and electricity costs influence logistics, adding that higher logistics and energy costs could also fuel food inflation. “However, households facing higher energy costs tend to cut discretionary spending while maintaining essentials. Overall, there is no meaningful hit to mass-market consumption, and demand conditions should remain stable,” said Mohd Sedek. While there could be some near-term caution, particularly among SMEs, Mohd Sedek believes there will not be a broad pullback in capital expenditure (capex).

Source: The Star April 02, 2026 14:08 UTC