By Zufazlin Baharuddin
KUALA LUMPUR, April 5 (Bernama) -- The gas pipeline fire incident at Putra Heights has significantly impacted the operations of approximately 200 industrial facilities in the Klang Valley, spanning various manufacturing sub-sectors and company sizes.
Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the affected manufacturers, many of whom rely on a steady and secure gas supply for production, are facing potential production stoppages, financial losses, and severe disruptions to their supply chains.
He said the most severely affected are those operating round-the-clock, particularly manufacturers of critical and essential supplies such as food and beverages, and industrial gases.
“While general resumption is anticipated by April 20, 2025, we understand that supply to selected essential service providers, such as food manufacturing facilities, may begin as early as later today.
“However, this is subject to factors such as the geographical location of the factories and the pressure levels achievable under the current circumstances,” Soh told Bernama.
On April 1, a fire broke out at the main Petronas Gas Bhd’s (PGB) pipeline near Putra Heights, Selangor, resulting in a disruption of gas supply to the affected industrial facilities which are customers of PGB and Gas Malaysia Bhd.
He opined that at this juncture, it is not possible to accurately estimate the total losses incurred by the affected companies, as this will largely depend on the timeline for the full restoration of the gas supply.
Supply chain ripple effects and export risks
FMM cautioned that there could be delays in fulfilling export orders, particularly for time-sensitive or perishable goods, even for firms not directly affected but located within the supply chains of impacted companies.
“Where alternative local suppliers are available, buyers may temporarily shift their orders, which could strain customer relationships for the affected manufacturers,” Soh said.
In the short term, he said companies may incur higher production costs via alternative energy sources to meet their commitments, affecting profit margins.
“If the disruption extends, it could potentially lead to order cancellations or loss of export contracts,” said Soh, adding that most companies are currently attempting to manage the situation from their existing facilities.
However, firms with multiple plants or regional networks may temporarily divert production to unaffected sites, he added.
Investor confidence at stake
Soh said such incidents inevitably affect business confidence, especially among investors assessing the reliability of utilities infrastructure.
“While Malaysia remains a competitive manufacturing hub, this event underscores the need for enhanced contingency planning and energy security.
“Investors may now place greater emphasis on supply continuity in their risk assessments and due diligence processes,” he said.
Temporary solutions and moving forward
Soh said industries are now also actively exploring temporary solutions such as alternative gas supply arrangements or relief measures to mitigate business disruption, including looking into alternative supply such as liquefied natural gas (LNG) by tanker trucks.
They also seek facilitation from relevant authorities in accommodating the necessary arrangements and approvals based on an emergency basis to minimise the impact of supply disruption to the affected industries.
“FMM is actively engaging with the Energy Commission, Gas Malaysia Energy Services, the state government and relevant government authorities to expedite the restoration of supply, particularly to industries categorised under essential services,” he said.
Soh said this incident, however, serves as a critical reminder of the need for a comprehensive energy risk management strategy, especially in a landscape where industrial reliance on piped natural gas has become the norm.
“FMM urges the authorities to prioritise resilience-building in energy infrastructure and to support industries in developing more accessible and cost-effective alternative fuel options,” he said.
-- BERNAMA
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