Malaysia sees early strain in aviation amid energy crisis

Emerging spillover effects from the global energy crisis are beginning to appear across Malaysia’s transport, tourism, and labor markets, even as core economic indicators remain relatively stable, Economy Minister Akmal Nasrullah Mohd Nasir said on Tuesday.

While transport and cargo flows have so far remained largely steady, the aviation and tourism sectors are showing early signs of strain, News.Az reports, citing Xinhua.

The minister noted that flight cancellations and a decline in tourist arrivals from the Middle East have already been recorded.

A total of 55 weekly flights operated by six airlines were cancelled between March 23 and 28. In addition, air passenger arrivals from the Middle East are projected to drop by 1.5 million this year.

Akmal Nasrullah warned that the broader impact on employment could begin to materialize from the second quarter of 2026 if geopolitical tensions persist, with potential job losses emerging from June onward.

He explained that the crisis is unfolding with a lag effect, where rising costs are felt first before spreading to labor markets and affecting household incomes.

News.Az 

By Nijat Babayev