Global Plastic Supply Disrupted, Govt Steps Up Efforts To Secure Additional Sources - Fadillah

KUALA LUMPUR, April 24 (Bernama) -- Global plastic supply is currently being affected by disruptions to oil and gas production, as well as uncertainties in the Strait of Hormuz, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is also Minister of Energy Transition and Water Transformation, said plastic manufacturing depends on raw materials such as naphtha, ammonia, ethylene and propylene derived from oil and gas.

“Plastic is a basic component in daily life, including food packaging, consumer goods and healthcare equipment,” he said during the Weekly Global Supply Crisis briefing today.

Fadillah added that the government is intensifying efforts to secure additional sources, expand international cooperation and explore alternative raw materials to ensure the continuity of the supply chain.

He added that the Ministry of Health has secured additional supplies of naphtha and resin from China to support the healthcare sector.

“The government will continue to ensure that the people’s supply of essential goods remains sufficient,” said Fadillah.

He also stressed that the government had been proactive and would continue strengthening efforts to safeguard the public’s welfare, focusing on three key strategies: ensuring an adequate supply of essential goods, extending supply through prudent resource management and distribution, and curbing price increases through close monitoring and firm enforcement.

Earlier, it was reported that the domestic plastic manufacturing industry is expected to face continued uncertainty in the short to medium term due to the West Asia crisis.

The prices of certain resin grades have exceeded US$2,000 per tonne, rising more than 100 per cent as the conflict in West Asia disrupted the flow of crude oil and petrochemical feedstock through the Strait of Hormuz, constraining upstream supply for resin production.

-- BERNAMA