Post by : Shakul
Malaysian manufacturers are grappling with serious challenges as supply shortages and escalating costs disrupt their operations across various sectors. According to a recent study conducted by the Federation of Malaysian Manufacturing, nearly 90% of firms anticipate operational hurdles in the upcoming weeks.
The survey unveils a widespread lack of essential raw materials including naphtha, liquefied petroleum gas (LPG), sulphur, and specialty chemicals. Affected industries range from plastics and electronics to food processing and rubber production. Compounding the issue are delays in crucial metal shipments, particularly aluminium and copper, which further strain manufacturing capabilities.
The crisis is worsened by rising energy and logistics costs. Close to half of the surveyed companies reported energy cost surges between 10% and 30%, while some faced even larger increments. Logistics expenses have also skyrocketed, with over half of the firms noticing considerable hikes stemming from disturbed global supply chains and increased freight charges.
Consequently, many manufacturers have reduced their output or paused production lines temporarily, while export activities have also suffered from delays and cancellations. In an effort to mitigate risks, companies are looking for alternative suppliers from countries such as China, India, and Japan; however, they continue to face challenges like regulatory barriers and inflated costs. This developing situation underscores the growing uncertainty in Malaysia's manufacturing landscape amidst persistent global economic tensions.
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