PETALING JAYA: Companies are scrambling to secure alternative fuels in the form of liquefied natural gas (LNG), diesel and liquefied petroleum gas (LPG) in the wake of the April 1 Putra Heights gas fire.
As the ensuring natural gas curtailment continues to disrupt operations at over 250 factories nationwide, affected companies need interim solutions to stay open, said Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai.
“However, the significantly higher cost of alternative supply will impose a substantial financial burden on affected industries, compounding the challenges they already face,” he said when contacted.
As of April 7 2025, more manufacturers – particularly in Klang Valley, Kedah, Perak, and Penang – have received notice of gas supply curtailment. While the restriction has been lifted for some users, especially essential service providers and low-pressure gas consumers, many sectors are still waiting for resumption, which is only expected by April 20.
The hardest hit include energy-intensive sectors such as iron and steel, rubber gloves, and chemicals. For these industries, the interruption poses serious risks to production continuity, profitability, and supply chain stability.
“Manufacturers who depend heavily on a consistent gas supply are now facing potential production stoppages, financial losses, and delayed delivery timelines,” Soh said.
He warned that the 20-day disruption could have broader repercussions beyond factory floors – affecting exports, employment, and investor confidence, particularly in Klang Valley and Penang, where many multinational firms are based.
In a written response, Top Glove Corporation Bhd confirmed it had been notified of the temporary gas supply stoppage and is in talks with Gas Malaysia to minimise the impact on glove production.
“We believe the government must take urgent and decisive action to resolve the issue swiftly,” it said.
“In the interim, we urge for full transparency in the allocation of gas, with priority given to essential sectors, much like the approach adopted during the Covid-19 pandemic.”
Delays in fulfilling export orders, especially for perishable and time-sensitive goods, are becoming a real concern. Soh said buyers might shift orders elsewhere, straining supplier relationships and further squeezing margins as companies turn to more expensive energy alternatives to meet delivery commitments.
“If the disruption extends, this could potentially lead to cancelled orders or even the loss of export contracts,” he cautioned.
While most companies have activated their business continuity plans, only larger firms and multinationals with multiple sites can temporarily shift operations to unaffected locations. Local small and medium enterprises (SMEs), however, lack such flexibility and are left relying on short-term workarounds.
FMM noted that authorities' efforts to bring in gas from the Trans Thai-Malaysia (TTM) pipeline are commendable, but Soh urged gas suppliers to provide clearer timelines and communication so companies can better plan operations.
He also called on the authorities to fast-track the necessary approvals and permits to enable interim solutions.
“These include permits to install new equipment for alternative supply, modify existing systems, or procure diesel – all of which normally take time under standard regulatory processes.
“We urge the authorities to facilitate these on an emergency basis,” he added.
It is learned that FMM’s internal survey of over 130 companies indicated that as of April 8, total daily production losses are estimated at RM1.105bil.
A major fire involving a 500-metre section of a Petronas gas pipeline erupted at Jalan Putra Harmoni in Putra Heights, Selangor, on April 1. Following the incident, Gas Malaysia announced a supply curtailment on April 2, affecting several areas in Selangor, including Shah Alam, Kundang, Petaling Jaya, Teluk Panglima Garang, Pelabuhan Klang and Pulau Indah.
