Like what we’ve seen throughout the world – when the lockdown lifts and the economy opens, there will be an initial surge of demand when factories reopen – this will cause logistics bottlenecks and increased costs. Factories were a key source of workplace clusters during earlier Movement Control Orders. When the total lockdown is lifted and Malaysia progresses to a 4-week phase 2 lockdown, it is unlikely that Malaysia will let factories operate at full capacity. Other bulky items like Rockwool depend on daily trips by trailer vehicles – similarly because of storage issues. Singapore companies such as G&W Group operate precast yards in Senai, Malaysia. Precast assemblies are usually made and delivered “Just-In-Time” – as no one has space to store such large objects. We think that many projects will be affected by material shortages.įor BTO flats which are already facing 6-9 month delays because of previous infections in dormitories, this spells further bad news. Some of the building materials that Singapore imports from Malaysia:Īccording to some sources, Singapore imports from Malaysia more than US$500 million annually. Malaysia has just announced a nationwide lockdown from June 1 to June 14, to arrest the sharp rise in the number of COVID-19 cases.ĭuring the so-called phase one or ‘total lockdown’, most economic and social activities will be barred.Īs factories were a key source of workplace clusters even under earlier Movement Control Orders (MCO), only those involved in making essential products such as food and medical equipment will be allowed to operate.Īlthough Minister of Trade and Industry Gan Kim Yong has confirmed that the flow of goods and supplies will continue during this time, it is likely that import of building materials will be disrupted, as the factories would have stopped production.
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