Malaysia’s energy windfall masks a burgeoning ‘two-speed’ economy
While higher oil prices have increased export revenues, businesses face strain from supply disruptions
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[KUALA LUMPUR] Bustling malls and persistent traffic jams in Malaysia may depict resilience, but one of South-east Asia’s largest economies is facing a “two-speed” reality, with growth faltering under the weight of rising logistics costs and material shortages linked to the Middle East crisis.
Manufacturers, particularly in plastic packaging, gloves and food production, are struggling to secure raw materials, noted Koong Lin Loong, chairman of the small and medium-sized enterprises (SMEs) committee in the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).
In addition, he said, it is unfeasible for SMEs to diversify suppliers given the prohibitive costs and extended lead times.
