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GEORGE TOWN: The supply chain business, which has been badly affected by the Covid-19 pandemic in the last two years, is expected to bounce back in 2022.
“Supply chain disruptions have negatively impacted the country’s growth, mainly caused by Covid-19-related issues,” said Federation of Malaysian Manufacturers Penang chairman Datuk Lee Teong Li.
He said with world economic growth for 2022 forecast at 3.9%, continuity was expected to be seen with manufacturers ramping up production, causing a ripple effect with small-scale industries.
“There were several upside and downside risks associated with the forecast of global supply chain issues, labour issues and business technology investments.
“Penang, however, is expected to see a surge in manufacturing activities, which is already happening, but the microchip shortage is expected to dampen the growth to a certain extent.
“In fact, it is boom time for Penang semiconductor companies as the state contributes 7% to the worldwide microchip market,” he said.
Lee added that there were at least 30 to 50 manufacturing companies in Batu Kawan that were expected to complete their facilities and begin production next year.
“Demand for goods that use computer chips will remain high and because of the lead time required to build wafer fabrication plants, supply will not be able to catch up with demand next year.
“Although labour shortage issues still persist, 2022 will be a year of growth with industries marching forward,” he said.
Small and Medium Enterprises Association Malaysia (Samenta) national secretary Yeoh Seng Hooi said stable interest rates, manageable inflation and higher consumer spending could result in the growth of small enterprises.
“There should be better trained graduates and more skilled workers with greater emphasis on technical and vocational education and training,” he said.
Yeoh also noted that the Malaysia External Trade Development Corporation (Matrade) had done a decent job in promoting local industries for the export market, which was essential for the growth of small and medium enterprises (SMEs).
“We expect more fiscal incentives for local SME ‘champions’ to grow in line with the attention given to multinational companies.
“It is also time to develop and take entrepreneurship to the next level by lowering taxes, something other countries in the region are currently doing,” added Yeoh.
Source: https://www.thestar.com.my/news/nation/2022/01/04/business-groups-predict-continuity-and-better-year-ahead