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Malaysia Urges Restraint in Middle East, Ringgit Seen Resilient Amid Tensions

Malaysian Prime Minister Anwar Ibrahim has held separate phone conversations with leaders from Qatar, the UAE, Bahrain, and Iran to convey Malaysia's position calling for peaceful approaches and restraint to ease rising Middle East tensions. He expressed appreciation for efforts by Qatar and Bahrain to ensure the safety of Malaysian residents and conveyed sympathy to Iran. Despite the significant geopolitical risks from the conflict, analysts from Maybank Investment Bank expect the Malaysian ringgit to remain relatively resilient due to strong economic fundamentals. The currency's performance is supported by Malaysia's status as a net oil importer, a current account surplus, and fiscal prudence.

Key Points: Malaysia Calls for Peace in Middle East, Ringgit Outlook Stable

  • Diplomatic outreach to ease tensions
  • Concern for safety of Malaysians abroad
  • Ringgit's resilience amid oil price rise
  • Strong economic fundamentals cited
  • Conflict's threat to global stability
2 min read

Malaysian PM calls for peaceful approach to ease Middle East tensions

PM Anwar Ibrahim holds calls with Middle East leaders, advocating restraint. Analysts say Malaysia's ringgit remains resilient despite regional conflict risks.

Malaysian PM calls for peaceful approach to ease Middle East tensions
"We agreed that all parties should prioritize peaceful approaches and exercise restraint - Anwar Ibrahim"

Kuala Lumpur, March 7

Malaysia has recently held phone conversations with several Middle Eastern leaders, calling for peaceful approaches and restraint to ease rising tensions in the region.

Malaysian Prime Minister Anwar Ibrahim said in several posts on social media on Saturday that Malaysia's position was conveyed during separate phone conversations recently with Qatari Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, United Arab Emirates' President Sheikh Mohamed bin Zayed Al Nahyan and Bahraini Crown Prince and Prime Minister Salman bin Hamad Al Khalifa.

Anwar said they exchanged views on the current developments in Qatar and Bahrain as well as the wider Middle East region following the attacks on Iran.

"I also appreciate the efforts of the governments of Qatar and Bahrain in ensuring the safety and welfare of Malaysians residing in both countries. We agreed that all parties should prioritize peaceful approaches and exercise restraint from any actions that could jeopardize regional stability and security," he said.

Meanwhile, Anwar also held a phone conversation with Iranian Foreign Minister Seyed Abbas Araghchi to convey Malaysia's sympathy and solidarity with the people of Iran during this extremely difficult time, Xinhua news agency reported.

Malaysia is also deeply concerned over the prolonged conflict's implications for global peace, stability, and well-being, said Anwar.

The United States and Israel launched massive attacks on Iran on February 28, killing Khamenei, multiple senior military commanders and hundreds of civilians. Iran has responded with multiple waves of missile and drone attacks targetting Israel and US assets across the region.

However, Malaysia's ringgit is expected to remain relatively resilient despite rising geopolitical risks in the Middle East, with analysts saying the currency could outperform regional peers on the back of strong economic fundamentals and robust technology-sector demand.

Maybank Investment Bank said in a note on Friday that, despite the recent conflict posing significant risks, it sees the ringgit still faring better than other peers, given that Malaysia is a net oil importer.

According to the research house, the country's strong fundamentals, current account surplus, fiscal prudence and political stability, all play a part in helping the ringgit better weather the challenging environment.

"Also, higher oil prices can actually back higher dividend payments from state-owned enterprises towards the budget," it added.

- IANS

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Reader Comments

R
Rohit P
The economic analysis is interesting. Even with war, their currency stays strong because they import oil. Shows how interconnected everything is. Hope our policymakers are watching and learning about building resilient economies.
A
Aman W
Peace talks are good, but will anyone listen? The major powers involved seem determined. Still, kudos to PM Anwar for trying. The safety of Malaysian citizens abroad should always be the top priority, glad that was mentioned.
S
Sarah B
Reading this from an Indian perspective, any conflict in the Middle East directly impacts us through oil prices and the safety of our large diaspora there. We have a huge stake in this stability. Diplomatic efforts like Malaysia's are crucial for the whole Global South.
V
Vikram M
The article mentions "hundreds of civilians" killed. That's the real tragedy, always. Leaders talk politics and strategy, but ordinary people pay the price. Hope the call for restraint is heeded before more lives are lost.
K
Karthik V
While I appreciate the peaceful message, I have to offer a respectful criticism. The report seems to place the blame squarely on one side ("US and Israel launched..."). For a truly balanced peace approach, the narrative should acknowledge complexities and provocations from all sides, not just one.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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