Supply chain under strain


PETALING JAYA: Cost pressures are beginning to emerge in the domestic food supply chain, says Economy Minister Akmal Nasrullah Mohd Nasir (pic).

“In terms of cost of living, selected food prices remain within a controlled range, although input pressures are beginning to emerge.

“Between April 20 and April 22, price movements for selected food items remained below 10%,” he said during the Global Supply Crisis briefing yesterday.

He said the average price of standard chicken rose 3.3% to RM9.70 per kg, grade C eggs increased 7.3% to RM3.93 per 10 eggs, while beef prices declined 3.8% to RM35.92 per kg.

For seafood, kembung fell 1.1% to RM16.10 per kg, while cencaru and white prawns/shrimps rose 0.95% to RM10.36 per kg and 0.61% to RM32.03 per kg, respectively.

As for vegetables, mustard greens rose from RM6.16 to RM6.51 per kg, spinach increased nearly 5% to RM5.59 per kg and fresh coconut milk went up 3.6% to RM16.41 per kg.

“These trends indicate that input and logistics cost pressures are beginning to signal early stress within the domestic food supply chain.”

Akmal Nasrullah said the government will monitor and implement necessary measures to mitigate the impact on consumers and maintain price stability.

This must extend beyond retail prices and cover upstream factors, including fertiliser, diesel, energy, raw materials, production, transportation and distribution, he said.

He said the government is focusing on fertiliser supply and agricultural inputs to ensure food security, including promoting bio-organic fertilisers and circular-economy practices that use biomass and agricultural waste.

A high-level biofuels committee has also been established to coordinate and accelerate the biodiesel agenda.

“As the prices of fuels such as coal and gas increase, the cost of electricity generation also rises, potentially affecting consumer tariffs if not carefully managed,” he said.

The Energy Commission is monitoring coal stock levels at power plants to ensure minimum supply requirements are maintained.

Akmal Nasrullah said electricity demand is rising, largely driven by hot weather and higher air-conditioner use.

However, he assured that 85% of households, or 7.5 million domestic users, consuming less than 600kWh will remain fully exempt from the Automatic Fuel Adjustment charge.

“The construction sector is also experiencing the effects of rising fuel and material costs. Since late March 2026, the industry has reported cost pressures due to increases in diesel, bitumen, premix, logistics and building materials,” he said.

Citing data from the Cons­truction Industry Development Board, Akmal Nasrullah said the average price increase for seven key materials, including bitumen, concrete, sand, aggregates, steel and bricks, has reached 12.59%.

Building materials account for the largest share of construction costs at 64.2%.

He said mitigation measures such as getting banks to offer loan rescheduling and restructuring options under a scheme to ease cash flow pressures, particularly for small contractors, will be implemented.

He outlined five strategic priorities to ensure economic stability and the well-being of the people – stabilising energy and critical input supply, controlling cost-of-living pressures, ensuring key public projects are not stalled, protecting jobs and family incomes, and building long-term economic resilience.

“Its impact has expanded to supply chains, logistics costs, energy supplies, industrial raw materials, agricultural inputs, food prices, the construction sector, labour market and investor confidence,” he said.

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