The ongoing conflict in West Asia has produced direct and measurable consequences for Malaysian manufacturers. Two rounds of industry-wide surveys conducted by the Federation of Malaysian Manufacturing (FMM) between January and April 2026 documented widespread supply chain disruption, rising raw material costs, shipping delays and a contraction in trade flows to affected markets

Programme Details

 BACKGROUND & RATIONALE

The ongoing conflict in West Asia has produced direct and measurable consequences for Malaysian manufacturers. Two rounds of industry-wide surveys conducted by the Federation of Malaysian Manufacturing (FMM) between January and April 2026 documented widespread supply chain disruption, rising raw material costs, shipping delays and a contraction in trade flows to affected markets.

Key findings from the FMM survey indicate that 67% of respondents reported disruption to their supply chains as a direct result of the conflict. Over 40% experienced significant increases in raw material costs, driven by longer shipping routes and freight rate volatility. More than half of those exporting to the West Asia region recorded a drop in orders or delayed payments. The conflict has also triggered a secondary effect: the broader re-evaluation of cross-border counterparty risk, trade documentation requirements and the adequacy of existing financial protection instruments.

Malaysian shippers/manufacturers, by and large, are well-positioned to trade internationally. What the current environment has exposed is a gap in structured knowledge and practical tools. Many companies operate with limited familiarity of international trade finance instruments, geopolitical risk management frameworks and the legal architecture governing cross-border transactions. That gap becomes costly when conflict disrupts normal trade flows.

SEMINAR OBJECTIVES

 The seminar has three clear objectives:

• Equip participants with a practical understanding of how geopolitical conflict translates into trade risk, supply chain vulnerability and financial exposure for manufacturers.
•  Introduce the trade finance instruments, contractual protections and operational controls that reduce exposure when trading in or through high-risk environments.
• Build awareness of how international trade rules and risk management frameworks, as developed and maintained by the International Chamber of Commerce (ICC), can be applied to protect Malaysian manufacturing businesses.

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