Diversify supply chains amid global uncertainties, SMA tells manufacturers

KUCHING (April 8): The Sarawak Manufacturers’ Association (SMA) has urged local manufacturers to strengthen risk management, diversify supply chains, and improve operational efficiency amid ongoing global uncertainties.

SMA secretary-general Stephen Ang said manufacturers are closely monitoring challenges affecting operations, including petrol supply, administrative requirements, and logistical disruptions.

“Manufacturing activities in Sarawak remain highly dependent on reliable petrol supply, particularly for transportation, machinery and backup power generation.

“Even short-term disruptions can lead to production delays, increased costs and supply chain inefficiencies,” he said in a statement.

He added that while companies are adjusting production schedules and optimising logistics, prolonged uncertainty could place additional strain on operations, particularly for small and medium-sized enterprises.

Ang said that the industry is now facing another period of uncertainty driven by external geopolitical factors, following the prolonged impacts of the Covid-19 pandemic.

“At present, there is no scaling down of operations among SMA members. SMA wishes to emphasise that while the industry remains resilient, there are practical limits.

“Should petrol supply constraints persist or costs escalate further, some companies may be compelled to adjust output or temporarily scale down operations,” he said.

The SMA is calling for clear, efficient, and timely petrol permit processes, consistent guidance from authorities, and flexible enforcement measures during this transitional period.

“Such measures are essential to ensure business continuity and maintain confidence within the industrial sector. At the same time, this situation underscores the urgent need for long-term structural adaptation,” he said.

Ang encouraged manufacturers to adopt renewable energy, invest in energy storage, and improve efficiency in using petrol, electricity, and water.

He stressed that reducing dependency on conventional petrol sources and enhancing resource efficiency are critical steps toward building a more resilient and sustainable manufacturing ecosystem in the state.

He also said that SMA remains committed to supporting its members and contributing constructively to policy discussions to ensure the continued growth and stability of Sarawak’s manufacturing sector.