S&P Global : Supply chains almost back to normal

Supply chains are almost back to normal, yet there are plenty of uncertainties in both the government policy and physical risk, heading into the second half of 2023, S&P Global Market Intelligence said.NSTP/ASWADI ALIAS. KUALA LUMPUR: Supply chains are almost back to normal, yet there are plenty of uncertainties in both the government policy and physical risk, heading into the second half of 2023, S&P Global Market Intelligence said. The firm said the ongoing conflict in Ukraine is expected to persist under the current Russian administration, leading to continuous challenges for supply chains due to sanctions and new EU regulations on exports. “Food supply chains are particularly exposed to the “Black Sea grain initiative,” which may only continue from the latter half of July 2023 without Russian participation,” it said. Additionally, S&P Global Market Intelligence said the review of US Section 301 duties on imports from China may finish by the end of 2023 and cause uncertainty for supply chains using these products and impact reshoring decisions that may be delayed until the situation is clarified. More News Malaysia’s seasonally adjusted PMI remains weak, despite an increase in exports Wall Street rises on hopes of Fed pausing hikes, debt ceiling deal cheer Ministry says sugar supply in Kelantan back to normal Penang water supply almost normal, says CM Section 301 is a provision that allows US officials to investigate and respond to unfair trade practices by other countries.The US imposed tariffs in four phases between July 2018 and September 2019, with rates ranging from 7.5 per cent to 25 per cent on different lists of goods. Reshoring refers to the return of the production and manufacturing of goods to the company’s original country. Furthermore, S&P Global Market Intelligence said there is evidence that reshoring is already taking place, where China suppliers’ share of US imports printers was 23 per cent in 2022, down from 67 per cent in 2013. “Reshoring can take years to implement. A key part of that process, alongside other resilience strategies, such as inventory management and multi-sourcing, is investment to digitize supply chain operations.” A recent survey by S&P Global Market Intelligence 451 Research showed that 42 per cent of firms already have comprehensive supply chain visibility systems in place, while another 33 per cent are in the discovery, or proof-of-concept stage,” the firm said. The S&P Global Market Intelligence analysis has shown China’s share of US imports of products covered by Section 301 duties fell to 11 per cent in 12 months, from Apr 30 2023 from 18 per cent in 2016.

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