Kuala lumpur: Close coordination between the governments, authorities, and manufacturers will be crucial to minimise disruptions to industrial operations should Malaysia face a severe and prolonged El Nino, according to the Federation of Malaysian Manufacturers (FMM). FMM said early warning and timely information on water supply conditions would allow manufacturers to activate contingency plans, make informed production decisions, and minimise unnecessary production losses.

According to BERNAMA News Agency, FMM emphasized the need for federal and state governments to coordinate in cases of critical water stress, exploring the possibility of mobilising water resources from less-affected areas, depending on technical and operational feasibility. FMM believes that the National Water Services Commission (SPAN) should be ready to activate its existing coordination mechanism where necessary, particularly if there are areas showing significant declines in dam or reservoir levels.

At the operational level, state water operators should provide industrial customers with regular, timely, and transparent updates on potential disruptions, rationing measures, and expected restoration timelines. FMM mentioned that the impact on manufacturing output would depend not only on the severity of El Nino but also on the management of water resources and supply disruptions, as well as measures taken by employers to protect employees from heat-related risks. The critical issue is whether there is sufficient early warning and timely intervention.

FMM noted that Malaysian manufacturers are already taking steps to prepare for the potential impact of a severe and prolonged El Nino, with many incorporating dry-weather risks into their business continuity and risk management plans. The industry association stated that preparedness varies by company size and nature of operations, but many manufacturers have experience managing previous water supply disruptions and other climate-related operational risks.

Depending on their operations, preparations may include increasing on-site storage capacity, improving water efficiency and recycling, identifying alternative supply sources, and prioritising critical production processes. FMM said water is a critical input for many manufacturing activities, while prolonged heat could disrupt production, increase operating costs, and pose health and safety risks to employees, particularly those working in hot environments or performing outdoor duties.

Industries most likely to be vulnerable include food and beverage, chemicals, electronics, rubber and plastics, textiles, metal processing, and other process-based industries that depend heavily on water for production, cooling, and cleaning. Where operationally feasible, manufacturers could adjust production schedules or temporarily reduce non-critical activities to manage limited water availability.

FMM warned that a severe and prolonged El Nino could increase operating costs through the additional cost of securing alternative water supplies, higher electricity consumption for cooling and ventilation, employee heat-protection measures, and potential increases in raw material, supply chain, and logistics costs. It stressed the importance of government intervention and oversight to ensure emergency water transport costs do not become excessive, particularly to prevent small and medium enterprises from facing unreasonable costs during a crisis.

While manufacturers have learned from previous disruptions and are increasingly incorporating climate-related risks into their business continuity plans, FMM highlighted that preparedness at the company level must be matched by early warning, transparent communication, and coordinated action by the federal government, state governments, SPAN, and state water operators. This will be critical to safeguarding manufacturing operations, employees, supply chains, and Malaysia's broader economic resilience.