Economists Julia Goh and Loke Siew Ting from UOB stated in a report that Malaysia possesses stronger buffers compared to many other regional nations in managing the repercussions of the Middle East conflict. They highlighted that the conflict affects Malaysia primarily through three channels: energy costs, trade, and inflation. The economists noted that prolonged disruptions, lasting several months, might necessitate coordinated fiscal measures, supply chain support, and inflation management strategies to safeguard economic growth and household welfare. Given that the current situation has persisted for less than two weeks, UOB is maintaining its baseline forecast, which projects Malaysia's GDP growth at 4.5%, inflation at 2.0%, and a fiscal deficit at 3.5% of GDP for the year 2026. UOB added that Bank Negara Malaysia is expected to keep its policy rate steady at 2.75%. However, should the disruptions extend beyond one month, policymakers might consider adjustments to subsidy frameworks and energy strategies.