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Datuk Masiung Banah — Bernama photo
KOTA KINABALU (March 12): Sabah State Legislative Assembly backbenchers have urged the government to prepare an immediate action plan to cushion the impact of global economic uncertainties arising from escalating tensions in the Middle East.
Backbenchers chairman Datuk Masiung Banah said the federal government should already have outlined both short- and medium-term measures in response to the sharp rise in global crude oil prices.
He warned that any surge in oil prices would inevitably drive up the cost of essential goods, including food items.
“If the government is slow to act and fails to implement an early action plan, traders may take advantage of the situation, leading to uncontrolled increases in the prices of daily necessities,” he said in a statement.
Masiung said the sharp increase in global crude oil prices could trigger a multiplier inflationary effect, which would ultimately raise the cost of living for the people.
He added that geopolitical tensions involving the United States, Israel, and Iran had disrupted key global trade routes in the Strait of Hormuz, creating fiscal repercussions through rising raw material prices in Malaysia.
The Kuamut assemblyman urged the Ministry of Finance and the Ministry of Economy to implement appropriate fiscal policies to address the potential economic fallout from the conflict.
According to him, the impact of rising fuel prices and imported goods is already being felt by the public.
He stressed that if the conflict drags on, the government must be prepared with additional fiscal measures to ensure that the people are not unduly burdened.
Masiung also anticipated increased financial pressure on the government, including the possibility of a higher fiscal deficit.
The Sedco Group chairman noted that the situation could become more critical if diesel prices rise further, as higher transportation and logistics costs would inevitably push up the prices of goods in the local market.
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