Amirudin said the full impact of the conflict has yet to be felt, despite recent increases in petrol and diesel prices and disruptions in supply chains, Utusan Malaysia reported.

He also said the projection was based on findings from an international bank, which forecast cost increases across all sectors.

“That is why the state government is closely monitoring developments.

“The real pressure point has not yet arrived; it may come around September or October,” he told the Selangor legislative assembly today.

Amirudin was responding to Michelle Ng (PH-Subang Jaya), who asked about the conflict’s impact on Selangor.

He said the state government must plan carefully as Selangor, with more than 7.3 million people, is likely to be among the most affected states.

State spending on construction, infrastructure maintenance and food stockpiles, tied to fuel prices and supply changes, would be affected, he added.

“With supply shortages, operating costs will surge if mitigation measures are not properly planned early on,” he said.

On April 16, Amirudin unveiled a RM130.42 million economic package in light of the economic fallout from the ongoing conflict in the Middle East.

The package seeks to bolster the state’s food security, reduce the cost of living, control inflation, boost public transport uptake, and distribute targeted aid to the needy.