KUALA LUMPUR (March 31): Malaysia does not require broad-based intervention for now even as uncertainties from the Middle East conflict cloud outlook, the central bank said on Tuesday.

Authorities are instead prioritising targeted support, building on assistance measures introduced during and after the Covid-19 pandemic, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour told reporters after the release of its 2025 annual report.

Policymakers are taking a more measured approach and assessing the overall impact on the economy before deciding on further intervention, he said, noting that Malaysia is in a better shape than its neighbours due to earlier measures.

A war launched by US-backed Israel against Iran has widened and is now in its fifth week. In response, Iran closed the Strait of Hormuz, a key waterway for shipments of one-fifth of the world’s oil and gas as well as scores of other commodities, including metals and fertilisers.

Business associations, ranging from those representing manufacturers to construction companies, have urged for government intervention to ease rising costs, claiming financial strain on their operations.

“While supply shock could have increased oil prices and could have an impact on the domestic price conditions, we also need to see what’s the second-round impact on input prices and also on consumer prices,” said Abdul Rasheed.

Instead of introducing blanket measures, support will be directed towards sectors that are most affected, based on a holistic view of economic conditions, he said.

Existing assistance frameworks remain in place, he stressed, noting that financial institutions are ready to work with affected borrowers from corporates to small and medium enterprises for various relief options.

Click here to read more stories on BNM Annual Report 2025.