He said that although most Malaysians may not yet feel the full impact of the war on their daily lives, the situation should not be taken lightly, describing it as “very serious” as the conflict has persisted for over a month and continues to escalate.
“The government is operating in crisis mode now. Even though we don’t feel it in our daily lives, the world is facing a global crisis,” he said at an event here.
“As mentioned by the prime minister this morning, we must adapt to the fact that we are actually in a crisis. This is not something to be taken lightly or joked about; it is a very serious matter…”
Loke pointed out that the consequences of the war have been far-reaching, with significant loss of life and widespread humanitarian suffering in the Middle East.
He said that beyond that, the global economic fallout from the war has been severe, particularly in the energy sector, which has seen prices surge by more than 100%, affecting many industries worldwide.
He noted that several countries have already moved into emergency mode to cope with the crisis. Countries such as the Philippines have declared an energy emergency, while fuel shortages have been reported in neighbouring countries such as Thailand and Vietnam.
Loke said although this has not happened in Malaysia, the situation should not be taken for granted as the country will inevitably feel the impact of the global crisis.
“Even though at this moment our lights are still on and petrol stations are operating normally without supply concerns, this is something Malaysians cannot take lightly because the impact is felt worldwide,” he said.
He noted that even though Malaysia is an oil-producing country, it remains dependent on global markets and external supply chains.
Loke said the government’s immediate priority is to ensure fuel supply stability. He said that while current supply is expected to last until May, a prolonged conflict in the Middle East could disrupt future availability.
The price of diesel has increased by RM2.40 over the past three weeks due to energy supply constraints caused by the war in the Middle East, bringing the current price to about RM5.52 per litre.
The 300-litre monthly quota of subsidised RON95 petrol which Malaysians enjoy under the BUDI95 programme has been reduced to 200 litres. The price remains at RM1.99 per litre.
“Our existing supply will not be interrupted until May, but if the war continues, we cannot guarantee that the supply will not be disrupted. This is something we all need to pay attention to.
“The government not only needs to prepare itself… It also needs to prepare the public,” he said.
Stating that most governments expect the economic and energy impact of the conflict to persist for six to 12 months, or longer if the war continues, Loke said a prolonged conflict could have cascading effects lasting up to two years, depending on its duration and severity.
He encouraged Malaysians to manage their travel more efficiently, noting that heavy reliance on private vehicles contributes to high fuel consumption.
“Each of us has a responsibility to ensure we survive and do not waste resources. No resource is unlimited,” he said.
The US and Israel launched large-scale airstrikes against Iran on Feb 28, prompting retaliatory strikes by Iran on US bases and allied positions.
Iran closed the Strait of Hormuz following the strikes, choking a key energy passage and triggering a spike in oil and gas prices that has led to inflationary fears across the globe.