FMM PRESS STATEMENT: FMM Calls for Coordinated Government–Industry Response to Global Shipping Disruptions

Kuala Lumpur, March 10, 2026: The Federation of Malaysian Manufacturing (FMM) calls for a coordinated Government–industry response to address the growing impact of the Iran–US–Israel conflict and the disruption around the Strait of Hormuz on Malaysia’s manufacturing exports and maritime trade.

Malaysia’s manufacturing sector faces direct exposure to disruptions in global shipping routes. More than 90 percent of Malaysia’s trade moves by sea. Exports reached a record RM1.607 trillion in 2025. Stable and reliable maritime logistics remain critical to sustain export performance and industrial production.

Recent developments already show rising freight costs and operational disruption. Major shipping lines introduced Emergency Freight Increases for cargo moving to and from Gulf ports. War-risk insurance premiums have also risen sharply. Based on industry experience during the Red Sea crisis in 2024, freight rates on affected routes increased 2 to 3 times within weeks while vessel diversions extended transit times by 1 to 2 weeks.

Manufacturers exporting to Gulf markets now face higher freight costs, tighter vessel capacity and uncertainty over delivery schedules. Higher global oil prices may also increase industrial energy costs and logistics expenses across the manufacturing sector.

While the Gulf Cooperation Council (GCC) countries are not Malaysia’s largest export destination, the region remains an important secondary market and a key transshipment hub for cargo moving onward to Africa, Central Asia and parts of Europe. Disruptions to Gulf ports therefore affect not only direct exports to the region but also shipments destined for other markets.

In light of these developments, FMM calls for the Government to establish an Export Crisis Response Task Force as an ad hoc Government–industry mechanism that can be activated when trade disruptions arise to address operational challenges faced by exporters and shippers. Recent international events highlight the need for such a mechanism, including the Red Sea shipping crisis in 2024 and the ongoing tensions in the Middle East affecting major maritime routes. At the same time, Port Klang is experiencing congestion which could worsen if shipping routes are further disrupted. A coordinated response platform would enable timely engagement between Government agencies and industry to assess developments, share information and respond quickly when such disruptions occur.

The Task Force should be chaired by the Ministry of Investment, Trade and Industry (MITI) and bring together relevant agencies including MATRADE, MIDA, Ministry of Transport, port authorities, Ministry of Finance, Royal Malaysian Customs Department and Bank Negara Malaysia with industry representation through FMM.

The Task Force should provide real time market intelligence on freight rates, shipping routes and logistics developments, facilitate information sharing between Government agencies and industry stakeholders, and coordinate rapid responses to address operational challenges faced by exporters and shippers. The Task Force would also enable emerging disruptions to be identified early and where necessary introduce support measures to assist exporters facing higher freight costs, vessel capacity constraints and shipment delays.

Several countries have already moved swiftly to coordinate responses to the situation. India’s Ministry of Commerce and Industry convened exporters, shipping lines and freight forwarders together with relevant ministries to assess the impact on trade flows, while South Korea has implemented national level export emergency coordination mechanisms involving Government agencies and industry stakeholders.

FMM stands ready to work closely with the Government and relevant agencies to support industry and contribute to a coordinated national response to safeguard Malaysia’s export competitiveness and trade connectivity.


Mr Jacob Lee Chor Kok
President, Federation of Malaysian Manufacturing

FMM Advocates Transparency, Integrity, Accountability and No Corruption

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About FMM
The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,300 member companies (4,200 direct and 9,100 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business networking and trade opportunities as well as regular information updates.

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