Malaysia unveils moves to tackle supply disruptions amid energy crunch

[KUALA LUMPUR] Malaysia on Tuesday (Apr 7) announced several measures to address supply disruptions caused by the Middle East conflict, with the government warning that the country has enough energy supplies to last only till the end of May.

“While the government has assured stable supplies for April and May, the biggest challenge is how to meet energy supply needs from June,” Economy Minister Akmal Nasir said in a televised announcement.

He added that the central bank will provide support to companies affected by fuel shortages, amid wider efforts by the government and state oil firm Petronas to diversify energy sources, strengthen cooperation with trading countries and secure production inputs.

The government will use data to better identify, detect and respond to pressures on the sectors most affected by the conflict; a special access pathway will also be put in place to address shortages of critical medicines and medical devices, he said.

On Tuesday, the Federation of Malaysian Manufacturers (FMM) said raw material shortages, soaring logistics costs and tightening diesel supply were threatening production across sectors that manufacture food, household goods, packaging, chemicals and consumer products.

The FMM represents over 13,000 companies.

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More than two-thirds of respondents in an industry survey expect raw material shortages within four weeks, and 8 per cent hold less than two weeks of stocks of critical materials, FMM said.

Nearly half of the respondents have reduced output or suspended product lines in response to current conditions; 51.8 per cent have experienced shipment delays, FMM noted. REUTERS