FMM president Jacob Lee said the federation’s internal survey of 222 members found that the situation had worsened in the past month, and that some companies were beginning to scale back operations.

“Some have confirmed they will cut production hours. Within a month or two, if supplies do not improve, those with limited stock may have to halt production,” he said.

To mitigate the impact, Lee said FMM was urging companies to explore alternative sources of raw materials.

He also called on companies to adopt cost-saving and adaptive measures, such as installing solar panels to reduce energy consumption and operating during off-peak hours when electricity demand is lower.

Lee said FMM would present further survey findings to investment, trade and industry minister Johari Abdul Ghani on Wednesday.

He was speaking at the Malaysia-Hong Kong Industrial Forum organised by FMM, an initiative aimed at bringing together industry players, policymakers, and technology experts while helping Malaysian companies adopt automation, source cheaper machinery, and expand their networks.

Also present were deputy investment, trade and industry minister Sim Tze Sin and Hong Kong Productivity Council chairman Sunny Tan, among other trade representatives.

The global supply of raw materials has been affected by constricted maritime traffic at the Strait of Hormuz, a key chokepoint for global energy and commodity shipments.

As a result, industries dependent on Middle Eastern imports such as plastics, chemicals and metals are facing supply bottlenecks, with delays and cost increases driven by higher transport, insurance, and security expenses.