Zafrul: Govt needs standby stimulus ready to tackle sustained Middle East crisis

KUALA LUMPUR, April 2 — The government must have a structured stimulus plan on standby, ready to be activated if the global energy crisis continues to exert pressure on Malaysia’s economy and the people’s cost of living, said former minister Datuk Seri Tengku Zafrul Aziz

In a statement posted on social media, the former minister of investment, trade, and industry stressed that the current global conflict has created a “new normal” that will place sustained pressure on energy costs and supply chains for a prolonged period.

He said that while additional measures may not be required today, the government must be prepared to act swiftly when circumstances change.

“The next stimulus or additional initiative need not necessarily be large, but it must be structured, phased, and activated when necessary,” Tengku Zafrul wrote.

He pointed out that the government has already spent approximately RM4 billion through the initiaives to absorb the initial shock of rising global oil prices, successfully maintaining the BUDI95 petrol price at RM1.99 per litre and continuing diesel subsidies for eligible sectors.

Drawing parallels with the 1998 Asian Financial Crisis, the 2008 Global Financial Crisis, and the 2020 pandemic, he argued that nations that act swiftly are better able to protect their people and recover faster.

Tengku Zafrul said that while fiscal discipline is important, it must be balanced with empathy for the public’s struggles.

“In a crisis, the government cannot hide behind numbers alone. The people are facing real cost-of-living pressures,” he stated.

He ended by expressing confidence that the prime minister will continue to make the right decisions to protect both the people and the nation’s economy.