KUALA LUMPUR, April 2 -- Malaysia's lorry industry is taking a direct hit from surging diesel prices, with operators warning of halted construction, shrinking fleets and mounting pressure that could soon spill into higher costs across the economy.

From tipper lorries tied to construction to cargo hauliers keeping supply chains moving, the strain is already showing - and for many, unsustainable.

Malaysian Association of Land Lorry Drivers adviser Hairi Ali said the impact is being felt immediately on the ground, particularly among smaller operators.

"When oil goes up, transportation goes up. When transportation goes up, the whole economic line gets stuck. Maybe others don't feel it yet, but we feel it," he told Malay Mail.

"Prices are ...