KUALA LUMPUR: Malaysia’s economy and energy sector remain insulated from the latest Middle East tensions, with Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz saying Israel’s attack on Qatar has had no direct impact on trade flows or the oil industry.
Speaking after the launch of the MyAERO Summit 2026 and the 10th anniversary of the National Aerospace Industry Corporation (NAICO) Malaysia, Zafrul said the government continues to monitor developments closely.
“If this doesn’t escalate, then it should be okay. But for now, there is no impact, including on the industry,” he told reporters.
Zafrul added that recent incidents in the Middle East, including Israeli airstrikes, have no bearing on Malaysia’s aerospace sector, which continues to expand its global partnerships and industry footprint.
EU recognition of palm oil standards
Separately, Zafrul noted that the European Union’s recognition of the Malaysian Sustainable Palm Oil (MSPO) certification marks a positive step for Malaysia-EU trade relations.
He said the recognition would support progress in negotiations for the Malaysia-EU Free Trade Agreement (FTA), with the second round of talks set for November.
“We believe that this FTA will help ease some of the difficulties and challenges in trade and investments between the EU and Malaysia,” Zafrul said.
The first round of talks, held in Brussels from June 30 to July 4, 2025, covered 21 negotiation chapters, with both sides seeking to strengthen market access and sustainability frameworks.
The comments underline Malaysia’s relative economic resilience amid geopolitical shocks, while also highlighting its long-term strategy of diversifying trade partners and embedding sustainability standards into global supply chains.
