MALAYSIANS have been told to brace for an increase in the prices of goods and services as the Russian invasion of Ukraine begins to reverberate around the world.

Domestic Trade and Consumer Affairs Minister Alexander Linggi said there could be a disruption to the world’s fuel supply.

A disruption, he said, will affect the global supply chain and that, in turn, will trigger the price hike.

“There will definitely be an impact,” he told reporters in Kuching when asked what impact the Russian military offensive will have on the Malaysian economy.

Russia is a major exporter of crude oil and gas to the world. 

If the western nations impose major economic sanctions on Russian exports to punish Moscow for the military action, it could lead to a major spike in fuel prices.

The early indications came yesterday as crude prices breached the US$100 per barrel barrier for the first time since 2014.

Russia reportedly accounts for at least a tenth of global crude oil production.

Linggi also warned traders against hiking prices on the pretext of the impending fuel price hike.

He said they should not be too hasty in raising prices when the effect of a hike in oil prices is not even felt yet.

He said they could be charged under the Price Control and Anti-Profiteering Act. – February 25, 2022.