Kuala lumpur: Disruptions to energy and petrochemical supplies could have far-reaching implications beyond fuel availability, potentially affecting items critical to everyday life, such as medical supplies, food packaging, and agricultural fertilisers, according to Tan Sri Mohd Hassan Marican. He stated that the biggest risk currently facing the country is not a single disruption in isolation, but the possibility of multiple pressures emerging simultaneously across energy, logistics, industrial supply chains, and broader economic activities.
According to BERNAMA News Agency, Mohd Hassan emphasized the need for preparedness and resilience-building to remain central to the response to this crisis. Energy security remains the immediate priority because energy sits at the center of the economy. Disruptions involving fuel supplies and petrochemical feedstocks could quickly affect transportation, manufacturing, agriculture, construction, and consumer goods. He noted that the modern economy runs on interconnected industrial supply chains, while medical supplies, food packaging, and agricultural fertilisers are structurally linked to petrochemical inputs.
Mohd Hassan highlighted that the government, through the National Economic Action Council (MTEN), is monitoring these vulnerabilities closely and working with industry partners to mitigate risks, protect consumers, and ensure critical supply lines remain open.
Looking ahead, he identified four key areas of vulnerability that require continued attention. The first is food security, particularly fertiliser availability and supply logistics. Food availability is not just about farming capacity, but also transportation, storage, and industrial inputs. Secondly, the medical and pharmaceutical supply chains remain dependent on imported inputs and international manufacturing networks. Thirdly, logistics and shipping resilience are crucial as shipping delays, port congestion, and freight disruptions can still affect domestic industries and businesses.
Heightened geopolitical tensions and climate-related risks have contributed to rising shipping and insurance costs, increasing overall supply chain expenses, and placing additional pressure on businesses, importers, and consumers. Lastly, larger companies may have stronger buffers against supply disruptions, but small and medium enterprises (SMEs) and industrial manufacturers, especially those with shorter inventory cycles, are often more exposed to volatility in raw material supplies and tighter cash flow pressures.
Mohd Hassan noted that Petronas and industry players have made early progress in securing oil supplies, but the situation remains fluid. Concerns that prolonged disruptions could place greater strain on inventories, logistics, and competition for critical inputs persist. He emphasized the importance of strengthening national buffers not only for fuel but also for food, medical supplies, industrial inputs, and logistics capacity.
The government has introduced comprehensive measures for micro, small, and medium enterprises (MSMEs) to preserve liquidity, support employment, improve access to financing, and help them adapt to a more uncertain operating environment. These measures go beyond broad-based economic measures and include financing, guarantees, rental relief, energy-efficiency support, and operational flexibility.
Mohd Hassan explained that MSMEs are particularly vulnerable to rising costs and supply-chain disruptions. If MSMEs are not adequately supported, the impact will inevitably trickle down to workers, suppliers, and households. The government, through the Ministry of Finance and Bank Negara Malaysia (BNM), introduced a RM15 billion intervention package last month to protect the sector. This includes an additional RM5 billion allocation to the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) with better guarantee terms and longer tenures, RM5 billion under the SME Stabilisation Relief Facility by BNM, and more than RM5 billion in microfinancing facilities for small traders and micro-entrepreneurs.
The Human Resources Ministry (KESUMA)'s Progressive Acceleration for Capability and Employability (PACE) provides training, job placement assistance, gig worker support, and paid industrial training placements within MSMEs. Mohd Hassan said the coordinated approach aims to strengthen MSME resilience, ensure continued access to financing, and support adaptation to current economic conditions.
He concluded that these measures reflect the spirit of 'berat sama dipikul, ringan sama dijinjing' (It is a collective effort, with everyone sharing the load), providing substantial financial lifelines designed to give smaller businesses the liquidity, confidence, and breathing room needed to ride out global economic headwinds.