PUTRAJAYA: Malaysia is aggressively pursuing bilateral agreements with key trading partners like Australia and China to secure critical raw materials.
Economy Minister Akmal Nasrullah Mohd Nasir said this aims to shield the domestic manufacturing sector from global supply chain disruptions.
He noted the government has received complaints from the manufacturing industry regarding shortages of vital input materials.
These shortages threaten to severely disrupt the domestic value chain.
"The government is strengthening bilateral negotiations based on strategic national needs and complementary trade principles," Akmal Nasrullah said in a press conference on Tuesday (Apr 21).
He said a major challenge is the difficulty of sourcing alternative supplies on short notice, compounded by the risk of export restrictions from producing nations.
To address this, the National Economic Action Council (MTEN) agreed to implement strategic mitigation measures focusing on logistics, risk mitigation and market expansion.
For Australia, the focus is on ensuring the continuity of energy and agricultural inputs.
This includes securing phosphate for fertilizer production in exchange for meeting Australia's demand for Malaysian urea.
"Both nations are also committed to maintaining stable energy supply flows," he added.
Negotiations with China are centred on securing strategic supplies of resin and naphtha. These materials are crucial to supporting the production of critical medical devices within Malaysia.
"This approach allows us to guarantee our supply sources, reduce the risks of global supply chain disruptions, and strengthen the country's food, energy, and health security," he said.
Naphtha is a mixture derived from petroleum refining primarily used to make plastics and solvents. Resin is manufactured using chemicals derived from naphtha and is vital in making polyvinyl chloride (PVC) for pipes, automobile parts and appliances.
