No feedback from importers about ongoing Red Sea Crisis on Malaysia – Transport Minister         

KLANG - The Transport Ministry has yet to receive any feedback from importers following the ongoing Red Sea Crisis on Malaysia.

As the situation unfolded, Transport Minister Anthony Loke said its ministry was waiting for responses from key industry players regarding the challenges posed by the current crisis.

"We are still monitoring the situation closely. I think some of the industry players have mentioned in the press that the current situation is manageable for the time being.

"We hope this is just a short-term disruption and we are actively exploring various solutions," he said in a speech during the 'Inauguration of Costa Serena: Malaysia's First International Cruise Homeport' at Costa Serena Cruise, Port Klang.

The crisis in the Red Sea erupted when Houthi militants in Yemen started targeting vessels in response to Israel's conflict with Hamas in Gaza.

This led to disruptions in access at the Suez Canal, the shortest shipping route connecting Asia and Europe.

Around 80 per cent of ships have chosen to change their routes, opting for the Cape of Good Hope instead of the Red Sea due to recent attacks by the Houthi militia.

Although the strategic decision aimed to prevent significant disruptions reminiscent of the Covid-19 era, it is not without its challenges.

According to the Shipping Association of Malaysia (SAM), trade routes to the United States and Europe have been significantly impacted, with freight rates doubling or more.

The surge was attributed to prolonged travel times, supply chain disruptions, and additional operational costs.

Nevertheless, the Malaysian economy has managed to mitigate the impact, thanks to increased trade with China through the West.