PETALING JAYA: Malaysian firms are managing to maintain raw-material supplies amid global disruptions, but are facing higher operating and working-capital costs as they adjust their sourcing, according to Bank Negara Malaysia (BNM).
The central bank, in an assessment presented at the 15th meeting of the National Economic Action Council (MTEN) this year, found that most firms were still able to obtain the raw materials they required, with some shifting to alternative sources.
However, the adjustment is increasing operating costs and working-capital requirements, with the impact more pronounced among small and medium enterprises (SMEs) due to their liquidity constraints and reliance on short-term financing, Economy Minister Akmal Nasrullah Mohd Nasir said.
BNM identified petroleum, fuels, plastics, naphtha, chemicals and fertilisers as inputs requiring continued monitoring, given their direct links to the manufacturing, transport and agriculture sectors.
The assessment comes as renewed disruptions to global energy supplies have pushed up prices of crude oil, liquefied natural gas (LNG) and coal, increasing the risk of higher costs being transmitted through supply chains.
He said the latest developments showed that the global supply crisis had shifted from a phase of managing a temporary shock to managing economic risks that could persist.
“Most firms are still obtaining the raw materials they require and some have shifted to alternative sources. However, operating costs and working-capital requirements are increasing,” he said at a media briefing following the MTEN meeting today.
He said the pressure was more pronounced among SMEs, particularly in terms of liquidity and their dependence on short-term financing to maintain operations.
To support SMEs affected by the disruption, the RM5 billion SME Stabilisation Relief Facility under BNM had approved RM2.8 billion in financing involving more than 4,900 SME accounts as of Aug 7.
The government has also provided a credit guarantee scheme with up to RM10 billion in guarantees for SMEs, including microenterprises, of which more than RM5 billion had been utilised.
The latest BNM assessment comes against a backdrop of renewed pressure in global energy markets.
Average Brent crude prices rose 8.9% to US$90.88 a barrel in August from US$83.42 in July, while daily prices exceeded US$120 a barrel during the week, he said.
Average LNG prices increased 13.2% to US$21.87 per million British thermal units (MMBtu) in August from US$19.32 in July and approached US$30 by mid-September.
Coal prices rose to US$130.67 per tonne in August from US$129.63 in July before reaching US$148 per tonne on Sept 10.
He said the higher prices showed that global supply disruptions could trigger sharp price increases even as international markets adjusted through alternative supply sources, strategic reserves and changes in demand.
For Malaysia, the impact is uneven across sectors, with industries more dependent on inputs from the Gulf region more exposed to supply disruptions and cost shocks, according to BNM’s assessment.
The central bank is monitoring petroleum, fuels, plastics, naphtha, chemicals and fertilisers because of their links to key parts of the domestic economy.
Despite the external risks, BNM projects Malaysia’s economy to grow by around 5% in 2026, with overall inflation expected to remain within the 1.5%-2.5% range.
He said the government would continue monitoring the sectors most exposed to external supply shocks and the ability of SMEs to absorb higher costs.
The MTEN meeting also heard a presentation from the Malaysian Investment Development Authority, which identified 52 proposed interventions and opportunities arising from the disruption, including positioning Malaysia as a “World+1” destination for companies pursuing supply-chain de-risking.
Priority sectors include electrical and electronics and semiconductors, aerospace and maintenance, repair and overhaul, medical devices, automation, green energy and critical minerals.
