The impact of the global supply crisis is expected to become more significant by the third quarter of this year, especially on price stability, industrial operating costs and the labour market, said Economy Minister Akmal Nasrullah Ahmad Nasir.
The Economy Minister stated that the country's Gross Domestic Product (GDP) growth of 5.4 percent for the first quarter of 2026, in addition to the unemployment rate remaining at full employment, provides a solid foundation for the government to implement more structured, proactive and responsive measures in addressing the current economic challenges.
He added that global supply pressures are being closely monitored because their effects do not occur immediately, but rather move in stages, affecting the prices of goods, industrial operating costs, employment and household spending.
He stressed, "The government will continue to implement targeted interventions to ensure that the people are not affected without appropriate support. This includes ensuring that basic supplies are sufficient, prices remain under control and assistance is channeled to groups that really need it," he said during the Global Supply Crisis Briefing broadcast on the ministry's Facebook page today.
Akmal Nasrullah said the GDP performance was better than several major world economies that had announced their first quarter 2026 performance, including Singapore (4.6 percent), the Philippines (2.8 percent) and China (5.0 percent).
He said the price of Brent crude oil remained in the high range of US$105.62 per barrel, reflecting a market that was still sensitive to geopolitical risks and expected global energy demand, especially from major Asian economies.
Touching on the capital market landscape, he explained that the impact on the domestic financial market remained under control despite the challenging global environment. The FBM KLCI index closed at 1,740.22 points on 15 May 2026, down 7.84 points or 0.4 percent compared to 1,748.06 points on 8 May 2026.
“For the period between 11 and 15 May 2026, the index traded in a range of between 1,740.22 points to 1,750.56 points. This trend reflects more cautious investor sentiment, but does not indicate any drastic market disruption,” he explained.
Regarding the cost of living, Akmal Nasrullah informed that the Consumer Price Index (CPI) for April 2026 increased to 1.9 percent compared to 1.7 percent in the previous month. However, the national inflation rate is still considered moderate and competitive compared to regional and global economies.
The increase in inflation was largely driven by the transport group which jumped to 4.1 percent in April 2026 from 1.6 percent in March 2026.
This dynamic was influenced by fuel price adjustments, with the average diesel price in Peninsular Malaysia increasing to RM5.92 per litre (March 2026: RM4.12) and the price of RON97 reaching RM5.06 per litre compared to RM4.03 previously.
