FMM to present 12-point proposal to Miti minister to ease industry burden amid supply chain disruptions
FMM In The News: THE EDGE MALAYSIA, April 20, 2026
KUALA LUMPUR (April 20): The Federation of Malaysian Manufacturing (FMM) will meet Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani on Wednesday to present a 12-point proposal to ease the burden on industries amid ongoing supply chain disruptions.
FMM president Jacob Lee said some manufacturers have already begun cutting production hours and output, with the risk of temporary shutdowns if conditions do not improve.
He added that certain factories are now operating with minimal inventory levels.
“Within a month or two, if there is no improvement, some may have to stop production,” Lee said on the sidelines of a memorandum of understanding (MoU) signing between FMM and the Hong Kong Productivity Council on Monday.
FMM earlier said its survey found that nine out of 10 companies are already affected or expect to be impacted within four weeks, as disruptions to key shipping routes, including the Strait of Hormuz, have led to raw material shortages.
The association's proposed 12 emergency measures to ease the burden on industries include tax relief for crisis-related logistics costs, temporary exemptions from import duties on critical inputs sourced from alternative markets, expanded diesel subsidies for fuel-intensive industries, temporary stabilisation of electricity and gas tariffs and faster approvals for alternative raw material sourcing.
Lee said the association is also refining its assessment of specific products likely to be affected to better clarify the scale and scope of disruptions.
Asked about potential retrenchments, Lee said early signs of rising unemployment have already emerged, with retrenchment figures increasing in the first two months of the year.
“Eventually we may go into some sort of disruption. Things are still too volatile to comment, but what we know is that this could be a prolonged period,” he said.
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