07/04/2026

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TUESDAY | APR 7, 2026

PM-led committee monitors impact of Middle East conflict o It meets weekly to assess spillover risks to Malaysia’s energy supply, trade flows and broader economy to enable early and effective responses: Gobind

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia has set up a committee led by Prime Minister Datuk Seri Anwar Ibrahim to assess the impact of the Middle East conflict and ensure the nation’s preparedness for any eventualities, said Digital Minister Gobind Singh Deo. He said the committee is meeting weekly to assess spillover risks to energy supply, trade flows and the broader economy, with agencies evaluating scenarios, including cost pressures, to enable early and effective responses. “Developments are being closely monitored through weekly National Economic Action Council meetings chaired by the prime minister. These sessions bring together key ministries and industry stakeholders to coordinate responses, to strengthen economic resilience and ensure that the livelihoods of Malaysians and the businesses that we have in this country remain protected,” Gobind said at the inauguration of Standard Chartered’s Global Fusion Centre in Malaysia, its first in the country, yesterday. He said the coordinated approach will help manage supply stability, cushion costs, support business continuity and protect Malaysians. “We will ensure that the necessary measures are taken so that, should any situation arise, we are prepared to manage it. Malaysia’s approach is clear, we remain committed to stability, restraint and constructive engagement while safeguarding our national interests and the well-being of our rakyat. ” Gobind said concerns have been raised particularly over energy supply and its potential impact on the country and the authorities will continue to assess developments as the conflict evolves. “We will continue to assess how we can remain prepared for any eventualities arising from the conflict. Ultimately, our focus is to ensure that despite global uncertainty, Malaysia remains stable, secure, forward looking and a trusted destination for investment and business.” Malaysia recognises that the global environment today is becoming increasingly complex, shaped by economic shifts, evolving security challenges and this rapid techno KUALA LUMPUR: AirAsia X is tightening cost controls and adjusting fares as it moves to cushion the impact of surging jet fuel prices, while maintaining that demand for travel remains resilient. Co-founder and adviser Tan Sri Tony Fernandes described the current spike in fuel prices as a “crisis”, prompting the group to act across three fronts – fare increases, capacity rationalisation and cost reductions. “We will have to raise fares, cut some capacity and cut some costs,” he said, noting that higher fuel prices are unavoidable and uneven across markets. Group CEO Bo Lingam said that at the operational level, about 10% of flights have been trimmed across the network, mainly targeting weaker or less profitable routes following the festive peak season. “We are looking at route profitability, and taking the opportunity to rationalise the network,” he said, adding that the airline is also consolidating frequencies on high-traffic routes to optimise load factors and yields without Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

centre integrates people, technology and intelligence to strengthen operational resilience and enable real-time response capabilities, while enhancing trust with clients, regulators and stakeholders. Speaking at the inauguration, Gobind said Malaysia’s digital economy growth is driven by its talent base. “Their skills and adaptability have positioned Malaysia as a trusted regional hub for digital services, technology and high-value operations, while remaining connected to the global market. Centres like this demonstrate Malaysia’s ability to support global technology and digital innovation.” The Global Fusion Centre is located at Standard Chartered’s Global Business Services Malaysia (GBS hub in Kuala Lumpur, established in 2001). GBS Malaysia supports the bank’s operations across more than 50 markets and is its second-largest GBS footprint globally after the one in India, with over 4,400 employees, 85% of whom are Malaysians. Interim location head of Standard Chartered GBS Malaysia Sharon Chung said the group’s continued investment reflects its long-term commitment to Malaysia and focus on building future-ready skills and streng thening operations. Standard Chartered Malaysia CEO Mak Joon Nien said the centre demonstrates the bank’s confidence in Malaysia and supports the country’s ambition to become a global technology hub, aligned with its push for strong digital infrastructure, data and cybersecurity frameworks, and talent development. depend on how long the current fuel and geopolitical pressures persist, though manage ment maintains the situation is manageable for now. “We are okay at this point, but it is a function of the duration of the crisis,” Lingam said. Expansion plans remain in place but flexible, with new routes and frequency adjustments continuing where viable, even as the airline prioritises profitability and cost discipline. Jamaludin said the group’s ability to balance entrepreneurial agility with stronger corporate governance will be critical in navigating the current environment. “With the right team and mindset, even the toughest crisis can become opportunities.” For now, AirAsia X’s focus is clear – protect margins through tighter cost control and measured fare adjustments, while staying positioned to capture demand once fuel pressures ease. AirAsia X also reaffirmed its commitment to developing Bahrain as a key strategic hub, connecting travellers between Asia, the Middle East and Europe. The service is scheduled to commence on June 26, with optimism that the conditions in the region will normalise by then.

Gobind (second, left) officiating the inauguration of the Global Fusion Centre flanked by (from left) Standard Chartered group chief information security officer Cezary Piekarski, Mak and Chung.

our people. Malaysia’s approach nevertheless is clear. We remain committed to stability, restraint and, most importantly, constructive engagement while we focus on safeguarding our national interests and the well-being of our rakyat. ” Meanwhile, the launch of Standard Chartered Global Fusion Centre in Malaysia reinforces the country’s role as a key technology and talent hub for the group. The AirAsia X independent non-executive chairman Tan Sri Jamaludin Ibrahim said the group’s response reflects a more disciplined operating model following its post-pandemic restructuring. “We are taking decisive and proactive actions, cost containment, capacity manage ment and financial resilience,” he said, adding that the airline remains “cautiously optimistic” despite ongoing volatility. The restructuring, which consolidated short- and long-haul operations under a unified aviation group, is expected to support cost optimisation and improve efficiency across the network. Fernandes said the broader ecosystem under Capital A Bhd, including maintenance, cargo and digital units, is already helping lower costs and diversify revenue streams. Despite the fuel-driven pressure on margins, demand continues to hold up. The airline is seeing double-digit growth in domestic bookings in recent weeks, while load factors on some international routes remain strong. “The key difference now is people can still fly, and flights are full,” Fernandes said. AirAsia X said its outlook for 2026 will largely

logical change, Gobind said. “In such a landscape, growth must go hand in hand with resilience. We are also witnessing heightened geopolitical tensions around the globe, with developments beyond our borders already taking energy prices, supply chains and market stability,” he added. Gobind said: “These shifts remind us that even distant events can have real conse quences on our economy and the daily lives of significantly affecting connectivity. On pricing, AirAsia X has begun passing on part of the fuel cost increase to passengers. Management said a fuel surcharge of about 20% has been introduced, with overall fares trending 30% to 40% higher compared with pre-crisis levels. However, the airline stressed it is avoiding blanket hikes and is instead calibrating increases based on route economics and flight duration to remain competitive. It has also lowered prebooked baggage fees as part of efforts to keep overall travel costs manageable. “We are very mindful, our fares are still competitive and affordable,” a senior executive said. Cost containment, meanwhile, is being driven internally without resorting to job cuts. Lingam said there are currently no plans for unpaid leave or workforce reductions, with savings instead coming from operational efficiencies and better asset utilisation. This includes advancing aircraft main tenance schedules during the current capacity cut, allowing the airline to maximise fleet availability when demand strengthens later in the year.

AirAsia X reins in costs, increases fares to cushion fuel shock