Govt to strengthen nation's economic stability amid Middle East tensions

 

The government is taking steps to mitigate any potential economic shocks as a result of rising tensions in the Middle East.

Prime Minister Anwar Ibrahim said the government was keeping a close eye on geopolitical developments and financial markets.

“The government will take appropriate actions to promote continued financial stability and orderly functioning of markets while also being concerned about the potential economic fallout from the current situation that may impact the people of Malaysia,” he said in a statement tonight.

This followed a special meeting between Anwar, Deputy Prime Minister Ahmad Zahid Hamidi, Agriculture and Food Security Minister Mohamad Sabu, as well as top civil servants including Treasury secretary-general Johan Mahmood Merican.

The meeting was called in the wake of Iran launching aerial attacks on Israel, in retaliation for the bombing of its consulate in Syria.

While the attacks have caused little damage, with no reported casualties, Iran has warned it would strike harder if Israel or its allies were to retaliate.

The attack led to temporary airspace closures in Iraq, Lebanon, and Jordan which had a major impact on flights.

While Iran, Iraq, Lebanon, and Jordan are not major trading partners with Malaysia, any prolonged disruptions to international flights from a potential escalation of conflict in the Middle East could have a major impact on the economy.

Ongoing violence must end

Tensions in the region were already high due to Israel’s continued onslaught on Gaza which has killed over 33,000 people, mostly women and children.

Anwar in his statement tonight said it was in the global community’s best interest to ensure that all parties involved work towards a cessation of hostilities in the Middle East.

“For a lasting solution, the ongoing violence must come to an end.

“Regardless, Malaysia stands with the Palestinian people who continue to suffer in this terrible situation.

“It is time for all parties to exercise utmost restraint, and leading global stakeholders should demand a cessation of hostilities by all parties,” he said. - Mkini