Economy

BUKIT MERTAJAM — Prime Minister Datuk Seri Anwar Ibrahim has criticised certain parties for politicising the issue of rising global oil prices even though the crisis stems from international conflicts beyond the country’s control.

He said that at a time when the world was facing geopolitical tensions involving attacks and the West Asian crisis, there were parties who continued to blame the government without considering the global reality.

“There are those who take advantage of this situation when the economy is declining, and oil supply is disrupted. It is not our fault, yet there are still some opposition members who hurl abuses at us in the current situation.

“The political climate must be controlled, and all parties should come together to find solutions,” he said when speaking at a Ramadan programme with Permatang Pauh community leaders at the Permatang Pasir Community Hall here today.

He said escalating tensions, including attacks involving Iran as well as retaliatory actions using missiles and drones, have affected oil and gas facilities and routes, including in the Strait of Hormuz, thus causing a sharp increase in global oil prices. 

Anwar, who is also the Finance Minister, stressed that the government continued to maintain fuel prices at a controlled level to protect the public, even as many other countries had raised prices.

Elaborating further, he said the government had also held a special Cabinet meeting with the National Security Council (MKN) to discuss measures to address the impact on the economy and national security.

Discussions have also been held with Petronas to ensure sufficient oil and gas supply, which is expected to be sustainable until May.

Meanwhile, Anwar said Malaysia had also been contacted by several world leaders, including Indian Prime Minister Narendra Modi and ASEAN regional leaders, to discuss efforts to ease tensions.

He stressed Malaysia’s position as independent and neutral, but firm in championing peace and rejecting all forms of violence.

Tensions in the Middle East have escalated since Feb 28, following attacks by Israel and the United States (US) on Iran, followed by Tehran’s retaliatory strikes against US interests in Gulf countries. — BERNAMA

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KUALA LUMPUR — Positive sentiment among netizens ahead of Aidilfitri remains evident, particularly on the stability of prices for essential goods and the continuation of government subsidies.

Overall, proactive price monitoring and the availability of goods at affordable prices through subsidy mechanisms are seen as contributing to a more reassuring festive atmosphere.

On social media platforms such as Threads and X, users shared observations of reasonably priced basic items, while also acknowledging efforts to maintain fuel subsidies.

User @huzaiyop noted that chicken was priced at around RM7.60 per kilogramme and onions at RM2 per kilogramme, with an adequate supply of packet cooking oil.

“Three years of Raya without issues with prices. Well done Madani,” the user said. 

Another user, @tubickhabis, described the situation ahead of Aidilfitri as smooth, citing stable prices and a longer festive break.

“Mosques are full, prices are stable and we have a long holiday,” the user said.

Meanwhile, several users also highlighted the stability of fuel prices during the festive season.

User @muhammadnajib79 said congestion at petrol stations reflected the balik kampung rush, noting that RON95 under the BUDI95 initiative remains at RM1.99 per litre.

“Even with congestion at petrol stations during the festive season due to the balik kampung rush, the situation remains manageable,” the user said. 

User @surayaror described the stability of fuel supply during the festive season, along with toll discounts, as a significant relief.

Meanwhile, @Blairispretty and @4177R highlighted the role of subsidies in easing the cost of living.

“Without BUDI95, fuel prices at market rates would be much higher,” the user said.

Previously, the government announced that the price of RON95 remains at RM1.99 per litre under the BUDI95 initiative, along with toll discounts in conjunction with Aidilfitri. — BERNAMA

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KUALA LUMPUR — The Malaysian Palm Oil Board (MPOB) is encouraging industry players and the public to participate actively in the trading of used cooking oil (UCO) as part of efforts to support the nation’s circular economy.

To ensure transaction transparency and facilitate the buying and selling of UCO, MPOB has provided a used cooking oil price reference portal for the domestic market, which can be accessed for free by all stakeholders, said MPOB in a statement.

The launch of the UCO average price data information is part of the government’s continuous efforts through the Ministry of Plantation and Commodities (KPK) to enhance market transparency, strengthen the price discovery mechanism, and reduce uncertainty within the oil palm industry value chain in Malaysia.

MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir (picture) said the display of the UCO reference price provides a clearer and reliable price benchmark, thereby supporting the development of a more transparent and inclusive UCO supply chain.

“This initiative not only strengthens the integrity of the domestic UCO market but also aligns with the government’s aspirations in driving the circular economy, with the benefit of used cooking oil as a high-value raw material,” he said.

He added that the supply of UCO is increasingly gaining global attention as a crucial raw material resource in the production of sustainable energy products such as biodiesel and sustainable aviation fuel (SAF), alongside various oleochemical products.

“Globally, the demand for SAF is expected to increase significantly, driven by the international aviation industry’s commitment to achieving net-zero carbon emissions by 2050.”

According to industry projections, SAF demand could increase by more than 3 to 5 times by 2030, consequently surging the need for raw materials like UCO as a sustainable low-carbon source.

MPOB said Malaysia has immense potential in UCO supply due to the high consumption of palm cooking oil in the household and food service sectors, such as catering businesses and fried food vendors. — BERNAMA

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KUALA LUMPUR — Malaysia has seen a growing “durian tourism” trend, with international visitors, particularly those from China, increasingly building short breaks and day trips around peak durian seasons and well-known producing areas, which appeal is both culinary and experiential.

Travellers want to taste varieties at source, learn how the fruit is graded and visit orchards that have become destinations, a report by BMI, a unit of Fitch Solutions revealed today.

“While this is not a new phenomenon, with regional tourists such as Singaporeans travelling to Malaysia for ‘durian trips’ for decades, this trend has been amplified by social media,” it said.

 On Chinese social media platforms, such as Douyin, the appeal of travelling to Malaysia specifically to eat durians has been magnified by how-to guides and the visa-free arrangement discussed earlier.

Durian’s status as a must-try regional food experience has also been received particularly well in China, with the market now the world’s top importer of durian in value terms, accounting for around 95 per cent of global import demand, it said. 

In 2025, China imported US$7.5 billion (US$1 = RM3.93) worth of the fruit, with Thailand and Vietnam as the two largest source markets, BMI said in a report titled: “Malaysia Leads ASEAN Tourism Market With Growing Premiumisation Opportunities.

“While this has increased the availability of durians in China, Malaysian durians are considered to be top quality and often cost significantly more in China,” it said.

Over the year, China imported US$4 billion and 941,183 tonnes of fresh durians from Thailand. Vietnamese imports accounted for US$3.4 billion and 920,578 tonnes.

Finally, China imported US$37.2 million and 3,064 tonnes of fresh durians from Malaysia. For Thailand and Vietnamese durians. this works out to US$4,239 per tonne and US$3,739 per tonne respectively.

“For Malaysian durians, this figure is US$12,138 a tonne, highlighting the significant higher price tag that Malaysian durian commands to the point where many Chinese consumers are willing to make a specific trip to Malaysia for the greater quality and authenticity at a lower price tag,” said BMI.

As for the international tourist arrival as a whole, the report said that it has continued to normalise since the pandemic, with inbound arrivals recovering strongly from 2023, as regional travel rebounded and airlines rebuilt capacity into KL International Airport (KLIA) and key leisure gateways.

Malaysia has the largest international tourism sector in ASEAN in terms of the number of international arrivals, at 42.2 million in 2025.

Neighbouring Asian countries remain the core demand base, supported by short-haul affordability and frequent connectivity from markets such as Singapore, Indonesia, Thailand, China and India.

“The introduction of visa-free entry for Mainland Chinese and Indian nationals has helped stimulate demand in a price-sensitive segment and aided the recovery of group tours and family travel.”

Recovery from Europe has also improved, as long-haul schedules returned and Malaysia’s entry requirements remain straightforward, while North American volumes have tended to lag due to longer journey times and more limited direct connectivity versus regional alternatives.

Air connectivity has been a key enabler of this rebound. Kuala Lumpur’s role as a hub, anchored by Malaysia Airlines and AirAsia, has supported both point-to-point tourism and onward travel into secondary destinations, said the report.

Capacity growth has benefitted established leisure markets such as Langkawi and Penang, while East Malaysia has also gained from improved links through Kota Kinabalu, which functions as a practical gateway for Sabah’s nature and island tourism circuits, it added.

It said Malaysia’s government and regulatory approach to international tourism has centred on restoring volumes from core short-haul markets while improving the ease of entry and the overall visitor experience.

“Tourism Malaysia’s Visit Malaysia 2026 (VM2026) campaign is a focal point for coordinated marketing, airline partnerships and product packaging, with the aim of converting regional demand into longer stays and higher spend.”

Immigration policy has also combined targeted visa facilitation, border-process digitalisation and destination promotion, alongside longer-running measures that support tourism-linked retail and higher-yield leisure segments.

All of these initiatives have certainly been successful, it said. — BERNAMA

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MALAYSIA’S headline inflation eased to 1.4% year-on-year in February, down from 1.6% in January, driven by slower price growth across most sectors, according to the Department of Statistics Malaysia (DOSM).

The consumer price index (CPI) rose to 136 points from 134.1 a year earlier.

Month-on-month, CPI increased 0.2%, led by housing, utilities, transport, and clothing.

Key sectors showing slower growth included insurance and financial services (4.7% vs 5.5% in January), education (2.8% vs 3.2%), and restaurant and accommodation services (2.5% vs 3%).

Food and beverages, which make up nearly 30% of the CPI basket, rose 1.3%, with meat prices, particularly chicken, up 2.5% to RM10.75/kg, being the main driver, while vegetable prices continued to decline.

Other notable price movements included personal care and social protection (up 5.7%), housing and utilities (1.1%), and transport, which fell 0.7% due to stable fuel prices and higher costs in goods and personal transport services.

Regionally, Malaysia’s inflation was lower than Indonesia (4.8%), Vietnam (3.4%), the Philippines (2.4%) and South Korea (2%), but higher than China (1.3%) and Thailand (-0.9%). — TMR

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MALAYSIA’S export growth lost steam in February, missing expectations and signalling moderating external demand, with Kenanga Research warning of rising risks to the outlook despite continued support from the electrical and electronics (E&E) sector.

Exports expanded 10.8% year-on-year in February, easing from January’s 19.6% — the fastest pace in 40 months — and falling short of both consensus forecasts and Kenanga’s estimate of 12.9%.

On a month-on-month basis, exports contracted 10.8%, marking a second consecutive decline and pointing to weaker shipment momentum, partly reflecting seasonal factors.

Kenanga said the moderation was driven largely by softer demand across key Asian markets, although robust US-bound shipments helped cushion the slowdown.

Among Malaysia’s major trading partners, export growth to China slowed to 13.2%, while shipments to Singapore plunged 17.1%, hitting a nine-month low. Exports to Japan also extended their decline for a fourth straight month.

In contrast, the US remained a bright spot, with exports surging 42.3% year-on-year, sustaining a third consecutive month of double-digit expansion. Shipments to the European Union also strengthened, rising 33.9%.

E&E remains pillar, but momentum cools

The E&E segment continued to anchor export growth, though signs of moderation are emerging.

E&E exports rose 28.5% year-on-year in February, down from 39.5% in January, while export value declined to RM60.8 billion from RM70.5 billion previously, according to Kenanga. The sector’s share of total exports also slipped to 46.4% from 48.0%.

Kenanga noted that while demand remains supported by structural drivers such as artificial intelligence (AI), 5G and 6G infrastructure, the Internet of Things (IoT) and electric vehicles, the pace of expansion is normalising after a strong run-up.

Meanwhile, commodity-linked exports remained weak, with palm oil and palm-based products contracting 13.7% and liquefied natural gas (LNG) plunging 27.3%, reflecting ongoing price and demand pressures.

Imports surprise on upside, trade surplus narrows

Imports grew 8.2% year-on-year, exceeding expectations, driven mainly by a rebound in retained imports.

Stronger imports of capital goods (+15.4%) and intermediate goods (+0.8%) suggest underlying investment and production activity remained intact, even as external demand softened.

However, the trade surplus narrowed month-on-month to RM16.7 billion, below both market expectations and January’s RM22.0 billion, as total trade growth slowed to a six-month low of 9.5%.

Cautious outlook amid external headwinds

Kenanga maintained its 2026 export growth forecast at 5.1%, adopting a cautious stance as downside risks to global trade intensify.

While E&E demand is expected to remain resilient, supported by a projected expansion in global semiconductor sales to US$1 trillion by 2026, the research house warned that Malaysia’s export outlook remains vulnerable to external shocks.

Key risks include uncertainty over US trade policies, escalating geopolitical tensions, supply chain disruptions, global inflationary pressures and China’s uneven economic recovery.

The cautious stance contrasts with more bullish projections from houses such as RHB Research, which expects export growth of 9.3% in 2026, driven by structural tailwinds from artificial intelligence, data centres and semiconductor demand.

Kenanga also noted that ongoing conflicts in the Middle East could influence global energy prices, potentially supporting Malaysia’s mining exports but also adding volatility to the broader macroeconomic environment.

Growth supported, but risks rising

Despite softer trade data, Kenanga expects Malaysia’s broader economy to remain supported by domestic demand, festive-related spending and tourism activity under the Visit Malaysia 2026 campaign.

It maintained its 2026 GDP growth forecast at 4.5%, reflecting a cautiously optimistic stance.

Still, the moderation in February trade data and widening external uncertainties suggest that Malaysia’s export trajectory may face increasing headwinds, even as the global technology cycle continues to provide a key buffer.

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GEORGE TOWN — Penang will establish a Special Task Force Committee to continue efforts to set up the Penang International Financial Centre (PIFC), based on a “whole-of-state” approach.

Chief Minister Chow Kon Yeow (picture) said the decision, made during the state executive council meeting yesterday, was a step to strengthen the state’s commitment to realising the initiative.

“I will chair the committee, while the State Secretary (Datuk Seri Zulkifli Long) will serve as deputy chairman, with members including the state financial officer, state legal adviser, representatives from the state economic planning unit (BPEN), Invest Penang, the Northern Corridor Implementation Authority (NCIA), the Malaysian Investment Development Authority (MIDA), and representatives from the private sector.

“The committee will be jointly managed by the state finance department and Penang Institute, which had previously assisted the state government in exploring the establishment of the PIFC, including conducting engagement sessions with various stakeholders and regulators,” he told a press conference in Komtar today.

At the initial stage, he said the special task force will be responsible for preparing a White Paper and a strategic action plan (blueprint) to be submitted to the Ministry of Finance Malaysia (MOF) by the third quarter of this year.

Elaborating further, Chow said the establishment of the PIFC aims, among others, to position Penang as a technology and financial nexus hub, particularly in supporting the semiconductor industry value chain, including the development of strategic financial services such as supply chain financing, Islamic finance-based fintech, and digital financial infrastructure.

He added that it is also in line with efforts to strengthen Penang’s position as a major electrical and electronics (E&E) hub through capital inflows resulting from global trade conflicts, thereby positioning the state as a low-risk investment destination.

He said the development of the PIFC is expected to take up to 20 years, but the initial implementation can begin in the near term by focusing on institutional establishment and regulatory ecosystem development.

Chow also informed that the first meeting of the special task force is scheduled for April 1 to begin detailed discussions toward preparing the blueprint and white paper.

Commenting on the location of the PIFC, he said the matter has yet to be finalised and is subject to study outcomes and approval by the federal government. So far, three companies based on the island have submitted proposals through an expression of interest process conducted by Penang Institute.

In March last year, the Penang Chief Minister’s Office officially submitted a letter of intent to the MOF regarding the proposal to establish an international financial centre in the state. However, the MOF gave a neutral response in July 2025, stating that there is currently no national policy to establish a new international financial centre.

Nevertheless, Chow said recent developments indicate a more positive response, with the federal government requesting the state provide a clear policy framework and conduct in-depth studies and comprehensive stakeholder engagement.

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by IFAST RESEARCH TEAM

GLOBAL oil prices have continued to surge despite the International Energy Agency’s (IEA) announcement of the largest release of emergency reserves in history. At the time of writing, oil is hovering near US$100 (RM393.80) a barrel – and the forces driving it higher show no signs of easing.

The Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes every day, is effectively closed. Gulf producers are shutting in production because they have nowhere to send their crude. Energy infrastructure across the region is under attack, and oil tankers have been targeted. Headlines are drawing comparisons to the 1970s energy crisis – and for the first time in decades, those comparisons do not feel like an exaggeration.

So how bad could this get?

Let’s not sugarcoat it. It could get worse. Iran’s Islamic Revolutionary Guard Corps has declared it would not allow “even one litre of oil” through the strait, and has warned the world to expect oil at US$200 a barrel.

In this article, we walk through exactly that scenario – what US$200 oil would look like, what it would mean for the global economy, and what it would mean for your portfolio. We also look at what history tells us about investing through moments exactly like this one.

The answer may surprise you.

How We Could Get There

If the Strait of Hormuz remains closed for months – or if further military escalation damages additional Gulf production infrastructure – oil could climb well beyond US$100. Prices of US$150, US$180, or even US$200 a barrel are plausible.

That would be a record in nominal terms. But it is worth putting the number in context, because the world has experienced extreme oil shocks before.

During the 1973 embargo, oil quadrupled from US$3 to nearly US$12 a barrel – equivalent to roughly US$80 in today’s money. During the 1979 Iranian Revolution, prices surged to about US$40, or roughly US$159 in today’s dollars. In 2008, oil peaked at US$147 during the commodity boom – approximately US$223 after adjusting for inflation. And in 2022, during the early weeks of the Russia-Ukraine conflict, Brent crude climbed to US$128.

A move to US$200 would be severe. But in inflation-adjusted terms, it would not be without precedent.

What US$200 Oil Would Mean

Let’s be honest about the consequences. At US$200 a barrel, we are talking about a severe economic shock – one that would be felt by almost everyone.

Consumers would be hit first. When energy costs spike, households are squeezed from two directions. They cut back on driving, heating and travel to reduce their energy bills – what economists call demand destruction. And because energy still takes a larger share of their income, they have less left for everything else. Eating out, new appliances, clothing – discretionary spending contracts across the board.

Businesses would face a brutal squeeze. Airlines, shipping firms, manufacturers and farmers all depend heavily on energy as an input. Some would absorb the costs. Others would pass them on to customers, feeding inflation further. Many would eventually cut jobs.

The broader economy would very likely tip into recession. Consumer spending, which drives the bulk of economic activity in developed countries, would contract. Business investment would stall. Unemployment would rise.

Central banks would face an impossible choice. Inflation would be surging from the energy shock, which normally calls for higher interest rates. But the economy would be weakening, which normally calls for lower rates. This painful combination – rising prices alongside falling growth – is called stagflation, and it is one of the most difficult environments for policymakers to navigate.

Stock markets would sell off as corporate earnings decline. With consumer spending falling and input costs rising, a drop of 30% to 40% or more from current levels would not be surprising.

If you have read this far and feel unsettled, that is understandable. We have just described a genuinely difficult scenario.

But stay with us, because the next part of this story is where it gets interesting.

Every Crisis was a Buying Opportunity

The world economy survived every one of those oil shocks – and so did investors who stayed the course.

Every single time, those who remained disciplined and kept investing through the storm came out the other side in a stronger position. And we are not talking about investors who perfectly timed the bottom – nobody can do that reliably. We are talking about ordinary investors who simply continued putting a fixed amount of money into the market every month, through the good times and the bad. The kind of regular savings plan that many of you are already on.

Here is what happened in three of the most relevant crises in modern history.

The 1973 Oil Embargo: The Closest Parallel to Today

In October 1973, OPEC imposed an oil embargo on the US in retaliation for its support of Israel during the Yom Kippur War. Oil prices quadrupled from roughly US$3 a barrel to nearly US$12 – the equivalent, in today’s money, of a move from US$20 to USD$80. The US economy plunged into recession. Inflation soared above 12%. Long lines formed at petrol stations, and at one point, a fifth of stations had no fuel at all.

The stock market was devastated. The S&P 500 (S&P 500) fell close to 50% from peak to trough. It took almost six years – until mid-1980 – for the market to recover to its pre-crash level.

For someone who invested a large lump sum at the peak and did nothing else, it was a long and painful wait.

But consider a different investor – someone contributing a fixed amount every month, regardless of what the market was doing. That investor was buying shares at progressively lower prices throughout 1973 and 1974. When the market was down 20%, their monthly contribution bought more shares. When it was down 40%, their money went even further. The shares accumulated at those deeply discounted prices became the highest-returning part of their entire portfolio.

The data bears this out. An investor who contributed a fixed sum of money a month into the S&P 500 starting from the crisis would have earned a total return of 6.8% after three years, and 13.5% after five – despite the market not fully recovering to its pre-crash level until 1980.

The 1990 Gulf War: A Sharp Shock, Rapid Recovery

When Iraq invaded Kuwait in August 1990, oil prices surged roughly 135%, reaching around US$41 a barrel – about US$103 in today’s money. The S&P 500 dropped nearly 14% as recession fears took hold.

An investor contributing monthly through this period was buying stocks at meaningful discounts for several months. They did not know when the conflict would end or when oil prices would normalise. What they did know was that their plan called for continued contributions – and they stuck with it.

The recession turned out to be mild and short-lived. The monthly contributor captured the full upswing on every share purchased at reduced prices during the sell-off. Within just one year of the crisis, this investor would already have gained 9.5%. And if they persisted with their regular savings plan, their returns would have grown to 21.2% after three years and 40.4% after five.

The Covid Crash of 2020: Terror, Then Triumph

In March 2020, the world faced something no one alive had experienced – a global pandemic that shut down entire economies almost overnight. The S&P 500 plunged about 34% from its February high to its March low in just over a month. Unemployment spiked to levels not seen since the Great Depression. Oil itself collapsed – in April 2020, US crude futures briefly turned negative for the first time in history, as demand evaporated so fast that producers could not give oil away.

The fear was overwhelming.

An investor contributing monthly through February, March, and April of 2020 was accumulating shares at a massive discount. They did not know a vaccine would arrive by year-end. They did not know governments would unleash trillions in stimulus. They were investing into uncertainty – the very same uncertainty that was making everyone else want to stop.

The S&P 500 recovered its entire loss by mid-August 2020, just five months after the bottom. Within one year, this investor had gained 18.9%. The three-year return was a more modest 4.3%, weighed down by the 2022 sell-off driven by rising interest rates – a reminder that the path is rarely smooth. But by the five-year mark, returns had climbed to 48.4%. Even someone who began contributing at the pre-crash peak in February 2020 – the single worst possible moment to start – still came out well ahead, because their continued monthly contributions at lower prices dragged their average cost down.

The Real Risk is Not the Vrisis

Some will argue that this crisis is different – and in many ways, it is. The physical closure of the Strait of Hormuz is unprecedented. But in every case, the crisis felt unprecedented at the time. In every case, there were credible reasons to believe things could get worse. And in every case, disciplined investors who kept contributing were rewarded.

The question is not whether the crisis is unique. They all were. The question is whether the principle of disciplined investing through uncertainty has ever failed over a three-to-five year horizon. It has not. The pattern is remarkably consistent.

The biggest risk in a crisis is not the crisis itself. It is the temptation to abandon your plan at precisely the wrong moment.

The investor who sold in March 2020 and waited for things to settle down missed one of the fastest and most powerful recoveries in market history. The investor who stopped contributing during 2008 missed the chance to buy shares that would more than triple over the following decade.

A regular savings plan is powerful precisely because it takes the decision out of your hands at the moments when your instincts are least reliable. You do not need to be brave. You do not need to predict the future. You just need to keep doing what you are already doing.

To capture long-term returns, you have to be willing to endure periods of short-term discomfort. That is the trade-off. It has always been the trade-off.

The moments when investing feels the most frightening are, historically, the moments when future returns are the highest. That is not a coincidence. 

You do not need to enjoy the ride. You just need to stay on it.

• The views expressed are of the research team and do not necessarily reflect the stand of the newspaper’s owners and editorial board.

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KUALA LUMPUR — Malaysia’s inflation rose modestly to 1.4 per cent in February 2026, with the consumer price index (CPI) climbing to 136.0 from 134.1 a year earlier, the Department of Statistics Malaysia (DOSM) said.

In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said eight categories recorded slower year-on-year growth compared with January 2026.

These included insurance and financial services at 4.7 per cent (January 2026: 5.5 per cent), education 2.8 per cent (3.2 per cent), restaurant and accommodation services 2.5 per cent (3.0 per cent), and food and beverages 1.3 per cent (1.5 per cent).

Other groups showed marginal increases, with health rising 1.2 per cent (1.4 per cent), housing, water, electricity, gas, and other fuels up 1.1 per cent (1.2 per cent), and information and communication advancing 0.5 per cent (0.7 per cent).

Meanwhile, personal care, social protection, and miscellaneous goods and services increased to 6.9 per cent (6.6 per cent), while alcoholic beverages and tobacco rose to 2.6 per cent (2.5 per cent).

According to DOSM, about 59.7 per cent of items (342 of 573) recorded price increases, of which 333 items (97.4 per cent) increased by 10 per cent or less, while only nine items rose by more than 10 per cent in February 2026.

The remaining 190 items (33.2 per cent) declined, and 41 items remained unchanged.

The food and beverages group, which contributes 29.8 per cent of total CPI weight, rose slower at 1.3 per cent in February compared with 1.5 per cent in January, driven by food away from home (2.4 per cent; January: 2.5 per cent) and food at home (0.3 per cent; January: 0.6 per cent).

Inflation in the housing, water, electricity, gas and other fuels group slowed to 1.1 per cent from 1.2 per cent in January, driven by water supply and miscellaneous services related to dwelling, 6.8 per cent (7.1 per cent), and actual rentals for housing, 1.5 per cent (1.9 per cent).

DOSM said the average price of unleaded petrol RON97 remained at RM3.11 per litre in February 2026.

The average price for diesel in Peninsular Malaysia rose to RM2.98 per litre from RM2.89 in January, while in Sabah, Sarawak and Labuan it remained at RM2.15 per litre. The average market price of RON95 increased slightly to RM2.55 per litre (January: RM2.54) compared with the subsidised price of RM1.99.

Mohd Uzir said eight states recorded inflation above the national rate of 1.4 per cent: Pahang (2.1 per cent), Federal Territory (FT) Labuan (2.1 per cent), Negeri Sembilan (2.0 per cent), Sabah (1.8 per cent), Johor (1.7 per cent), Pulau Pinang (1.6 per cent), Terengganu (1.6 per cent), and FT Kuala Lumpur (1.6 per cent). Kelantan recorded the lowest inflation at 0.2 per cent.

All states registered higher food and beverage inflation except Kelantan (-0.7 per cent). Seven states exceeded the national food and beverages inflation rate of 1.3 per cent, led by Negeri Sembilan (3.0 per cent), Pahang (2.3 per cent), Johor (2.1 per cent), FT Kuala Lumpur (1.8 per cent), Pulau Pinang (1.7 per cent), Kedah (1.6 per cent) and Melaka (1.4 per cent).

Month-on-month, headline inflation rose 0.2 per cent in February (January: 0.1 per cent), driven by housing, water, electricity, gas and other fuels (0.7 per cent; January: 0.3 per cent), transport (0.2 per cent; -0.4 per cent) and clothing and footwear (0.1 per cent; 0.0 per cent). Five groups recorded no monthly changes: food and beverages, furnishings and household equipment, health, recreation, sport and culture, and insurance and financial services.

Regionally, Malaysia’s 1.4 per cent inflation in February 2026 was lower than Indonesia (4.8 per cent), Vietnam (3.4 per cent), the Philippines (2.4 per cent) and South Korea (2.0 per cent), but higher than China (1.3 per cent) and Thailand (-0.9 per cent). — BERNAMA

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KUALA LUMPUR — Malaysia’s trade grew 9.5 per cent to RM245.2 billion in February 2026 from RM223.9 billion a year earlier, the Department of Statistics Malaysia (DOSM) said. 

Exports rose 10.8 per cent to RM131.0 billion, while imports increased 8.2 per cent to RM114.2 billion.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the export growth was driven by both re-exports and domestic exports.

“Re-exports, which accounted for 20.3 per cent of total exports, rose 24.8 per cent year-on-year to RM26.6 billion. Domestic exports, representing 79.7 per cent of total exports, expanded 7.7 per cent to RM104.3 billion,” he said in a statement accompanying the February 2026 Malaysia External Trade Statistics release.

Correspondingly, imports increased 8.2 per cent to RM114.2 billion. The trade surplus widened 32.5 per cent to RM16.7 billion, marking the 70th consecutive month of surplus since May 2020.

Compared with January 2026, exports, imports, total trade and the trade surplus fell 10.8 per cent, 8.5 per cent, 9.8 per cent and 23.9 per cent, respectively.

By commodity group, 87 of 258 export groups and 135 of 258 import groups posted gains compared with February 2025.

Export growth was mainly driven by higher shipments to the United States (+RM7.4 billion), Taiwan (+RM3.3 billion), the European Union (+RM3.2 billion), Hong Kong (+RM2.2 billion), China (+RM1.7 billion), Thailand (+RM834.2 million) and South Korea (+RM621.6 million).

The rise in imports reflected increased inflows from China (+RM6.1 billion), South Korea (+RM3.6 billion), Taiwan (+RM3.3 billion), Costa Rica (+RM1.1 billion), Vietnam (+RM1.1 billion), Switzerland (+RM655.1 million) and the EU (+RM650.3 million).

Exports were boosted by shipments of electrical and electronics (E&E) products (+RM13.5 billion); other manufactures (+RM3.0 billion); metalliferous ores and metal scrap (+RM2.4 billion); optical and scientific equipment (+RM2.0 billion); other goods (+RM325.1 million); and crude petroleum (+RM72.4 million).

Imports rose mainly on stronger inflows of E&E products (+RM13.3 billion); metalliferous ores and metal scrap (+RM1.4 billion); other goods (+RM1.1 billion); machinery, equipment and parts (+RM629.4 million); optical and scientific equipment (+RM612.5 million); and other manufactures (+RM533.7 million).

Mohd Uzir noted that import growth by end use was driven by higher demand for capital goods, consumption goods and intermediate goods.

Imports of capital goods, accounting for 14.0 per cent of total imports, rose 15.4 per cent or RM2.1 billion to RM15.9 billion. Consumption goods (8.1 per cent of total imports) increased 1.5 per cent or RM136.7 million to RM9.2 billion. Intermediate goods (51.8 per cent of total imports) rose 0.8 per cent or RM474.5 million to RM59.2 billion.

For January–February 2026, total trade rose 11.0 per cent to RM516.9 billion from RM465.8 billion a year earlier, driven by a 15.2 per cent increase in exports and a 6.4 per cent rise in imports. The trade surplus surged 137.6 per cent to RM38.7 billion. — BERNAMA

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