Kuala lumpur: Five manufacturing subsectors have been identified as being most affected by the impact of the energy crisis and global supply disruptions, according to Economy Minister Akmal Nasrullah Ahmad Nasir. He highlighted that the automotive and components, food and beverages, plastics and packaging, chemicals and petrochemicals, and electrical and electronics subsectors are facing significant challenges.
According to BERNAMA News Agency, a survey conducted by the Federation of Malaysian Manufacturing (FMM) involving 225 companies out of approximately 4,200 FMM member companies, which cover 29 manufacturing sub-sectors, shows that the pressures facing the industry are extensive. Key issues highlighted include raw material supply challenges, rising logistics costs, cash flow pressures, export competitiveness, investment planning, and the need to maintain employment.
"These findings show that the pressures faced by the manufacturing industry have a knock-on effect on production costs, smooth operations, export deliveries, and the ability of companies to maintain growth momentum," Economy Minister Akmal Nasrullah stated during a Global Supply Crisis Briefing on the ministry's Facebook page. Earlier, he mentioned that the National Economic Action Council (NEAC) had received a presentation from the FMM on the impact of the energy crisis and global supply disruptions on the country's manufacturing industry.
Akmal Nasrullah further noted that the government is aware that small and medium enterprises (SMEs) are more vulnerable due to their limited financial ability to absorb prolonged cost pressures. "If this situation is not addressed effectively, it could affect national output, export performance, future investments, and household income," he added.
The government has provided targeted financing support to assist SMEs in maintaining cash flow, managing cost pressures, and ensuring continuity of operations. This includes the SME Stabilisation Relief Facility by Bank Negara Malaysia, amounting to RM5 billion, to provide working capital financing to affected SMEs. Additionally, financing guarantee support is offered to SMEs through Syarikat Jaminan Pembiayaan Perniagaan Bhd across economic sectors, including the manufacturing sector, subject to the scheme's eligibility.
"The government appreciates the efforts of companies that have taken internal measures to maintain employment in the stressful situation they are facing," Akmal Nasrullah concluded.