Datuk Dr Ameer Ali Mydin said global geopolitical tensions could disrupt product supply chains more than cause price increases, highlighting risks for Malaysia's economy in the near term [1, 2]. "Now, the challenge is not the price. I think people keep focusing on price. Let's forget the price. More importantly, do you have the supply?" he told reporters in an exclusive interview on May 13 [1].
While Malaysia's economy has not yet experienced significant impacts from these geopolitical challenges, Mydin expects considerable supply chain difficulties could arise within the next three to six months [1, 2]. He noted that prices on certain items have fluctuated, with some increasing or decreasing by 3% to 5% [1, 2].
The managing director pointed to previous shocks such as the Ukraine war, which created fertilizer shortages, and the Covid-19 pandemic as precedents for disrupted supply chains [1, 2]. These global events demonstrate how supply issues rather than price spikes can have bigger effects on product availability.
Mydin singled out e-commerce players as facing greater challenges than traditional retailers due to rising logistics costs. He said consumers are often misled by "free shipping" offers, emphasizing, "There is no such thing as free. If you are not paying for it, your colleagues or someone else is paying for it somewhere down the line" [1, 2].
He explained that supermarket shoppers buying in bulk tend to spread delivery costs over more items, but e-commerce buyers purchasing individually face proportionally higher logistics expenses [1, 2].
Despite higher petrol and energy prices in Malaysia, travel habits are unlikely to change significantly, Mydin added [1, 2].
Mydin's comments came during a May 13 interview where he discussed the risks posed by escalating geopolitical tensions to Malaysian supply chains and retail sectors [1]. He warned the peak impact of disruptions is likely within three to six months, underscoring challenges businesses should prepare for [2].
