In the last few days, the Movement Control Order has awoken many to the fact that supply chains that we assume work without question, have now become highly critical.  The establishment of a special taskforce to maintain critical supply chains by the current government is an excellent step to ensure that, what is currently a medical crisis doesn’t turn into a broader crisis.  Moving forward, and in light of the extended Movement Control Order, the battle to ensure that critical supply chains remain functioning will be fought on two fronts, food and medical supplies.

Critical medical equipment have become the weapons that front-liners are scrambling to get their hands on to fight the COVID19 pandemic.  To date, we have stemmed the tide but every day that this crisis continues the ability to source complex equipment also increases in difficulty.   To make informed decisions, a deeper understanding of the medical supply chain is needed to ensure that we don’t miss a step.

Several years ago, the nation moved rapidly towards Halal food production, this included increasing capacity in the agriculture sector and the manufacturing sector mostly driven by SME’s.  Now we see the wisdom of that initiative, in this time of crisis it has pay dividends.  Today we see the need for “strategic production” which may not be highly profitable but forms the vanguard that will buffer food supply requirements from any delays of international shipments.

While we have been able to identify certain gaps we need to intelligently, strategically and calmly move towards a sustainable future.  I’m proposing that all stakeholders work together with the government to develop a “Critical Materials Policy”.   Such a policy will assist the government and industry players plan for crises, to meet the needs of the economy and ultimately the people during critical times.

In what might seem a long way away, the “Post COVID19” world will see a change in the way countries increase their levels of self-sufficiency in critical areas.  Money might be able to buy you a lot of things but during a global or regional crisis it will matter little if you can’t produce the critical items needed to deal with the crisis that has befallen your own nation.

With this in mind, investment planning will need to do more than keep one eye on the components of critical supply chains. The question will be, how will Malaysia be able to attract those investments onshore when companies will be looking to benefit from incentives from home nations to establish production there and how quickly can Malaysia develop domestic capabilities?  There is much work to be done by all.

While we continue to take the advice of the Prime Minister to “Stay at Home” we still need to think globally about a sustainable future.

Nordin Abdullah
Founding Chairman

Comments on this subject were also featured in the following media:

Supply Chains: Moving towards a Critical Materials Policy– News Hub Asia

Supply Chains: Moving towards a Critical Materials Policy– Malaysia Global Business Forum

Let’s move towards a ‘critical materials policy’– New Straits Times