Malaysia’s economic exposure to Mideast conflict minimal, says Sim

2026-03-06 - 05:13

Deputy investment, trade and industry minister Sim Tze Tzin said total trade with Iran amounted to RM2.45 billion in 2025, which was less than 0.1% of Malaysia’s total trade. KUALA LUMPUR: Malaysia’s economic exposure to the ongoing Middle East conflict is “very minimal”, according to deputy investment, trade and industry minister Sim Tze Tzin. Sim said trade with Iran accounts for just 0.09% of Malaysia’s overall trade, as Putrajaya follows sanctions imposed by the United Nations in conducting trade with Tehran. He said there was also limited exposure in terms of LNG trade with Iran since Malaysia produced both oil and natural gas. “Trade with Iran is 0.09% of total Malaysian trade. Liquefied natural gas is not on the top five trading items. We follow the UN sanctions, so we only trade in food and permitted commodities with Iran. “In terms of LNG, we have very little exposure because Malaysia is an oil and LNG producer. So, in that sense, Malaysia’s exposure to the Middle East conflict is very minimal,” he said at a press conference here today. Sim said total trade with Iran amounted to RM2.45 billion in 2025, the bulk of which were exports, at RM2.17 billion. Fighting in the Middle East has escalated sharply since initial strikes were launched by US and Israel, with Iran retaliating with missile barrages against US bases in the region, Israeli cities, and oil tankers linked to Western nations. Regional powers, including the United Arab Emirates, have called for de-escalation, but the risk of a wider war remains high. Separately, Sim said investment, trade and industry minister Johari Ghani will hold a video meeting with Rick Switzer, the deputy US trade representative, on March 10. The meeting will discuss the US Supreme Court’s ruling on US president Donald Trump’s unilateral tariffs, the reciprocal trade agreement signed last year, and the new tarffis announced by Trumpn after the court nullified his previous duties.