KUALA LUMPUR, March 27 (Xinhua) -- Malaysian industry groups are warning of imminent price hikes and potential business closures as soaring diesel prices, driven by the Middle East conflict, push operating costs sharply higher.
Food manufacturers and sundry goods traders told local media that rising fuel costs are forcing companies into a corner, with many already absorbing tens of thousands of ringgit in additional monthly expenses.
"Transport runs every day. When diesel goes up, costs go up. If this continues, manufacturers will either have to close or increase prices to survive," Malaysian Food Manufacturers Association President Ding Hong Sing was quoted as saying.
Separately, Federation of Sundry Goods Merchants Associations of Malaysia President Hong Chee Meng said members are facing a "double blow" from higher diesel costs and rising taxes, warning that businesses are also grappling with more expensive raw materials due to the war.
"In the end, it is ordinary consumers who will bear the impact," he said, adding that costs for some products have already increased by about 15 percent.
Meanwhile, the pressure is compounded by broader supply chain disruptions linked to the Middle East conflict.
The Federation of Malaysian Manufacturing said the closure of key shipping routes and higher oil prices have driven up freight rates, insurance premiums and raw material costs. Supplies of petroleum-based inputs such as plastics and chemicals are also tightening.
"These pressures are immediate and cumulative. Cost increases, supply delays and operational uncertainty are already affecting manufacturing output and export fulfilment," it said in a statement on Friday.
The industry groups urged the government to act swiftly, warning that without intervention, the cost burden will increasingly be passed on to consumers or force firms to scale back operations. ■
