KUALA LUMPUR: Five manufacturing subsectors were 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 said the sub-sectors included the automotive and components, food and beverages, plastics and packaging, chemicals and petrochemicals, and electrical and electronics.
He said the manufacturing sector is one of the main drivers of the Malaysian economy, especially in terms of contribution to exports, employment opportunities, investment and domestic supply chains.
According to a survey by the Federation of Malaysian Manufacturing (FMM) involving 225 companies out of about 4,200 FMM member companies covering 29 manufacturing sub-sectors, the pressures facing the industry are widespread.
Key issues raised include raw material supply, 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," he said in a Global Supply Crisis Briefing today on the ministry's Facebook page today.
Earlier, he said the National Economic Action Council (NEAC) meeting today had heard a presentation from the FMM on the impact of the energy crisis and global supply disruptions on the country's manufacturing industry.
Meanwhile, Akmal Nasrullah said the government is well 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.
According to him, the government has provided targeted financing support to help SMEs maintain cash flow, manage cost pressures and ensure continuity of operations, including the SME Stabilisation Relief Facility by Bank Negara Malaysia amounting to RM5 billion to provide working capital financing to affected SMEs.
The government also provides financing guarantee support 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,” he added. - Bernama
