NO TABLE: Malaysia Extends COVID-19 Lockdown Another Two Weeks
On Friday, June 11, Malaysia announced it would be extending its nationwide lockdown by an additional two weeks (through June 28, 2021) as they continue to see soaring COVID-19 cases. “The decision was made after taking into consideration that the number of daily cases is still at more than 5,000 cases a day,” stated Defense Minister Ismail Sabri Yaakob.
Back on June 1, 2021, the country set into action a two-week lockdown with only essential manufacturing and services sectors allowed to operate. Shopping malls, schools, and even public parks were closed. This lockdown failed to curb Malaysia’s worst coronavirus wave. Both public and private healthcare resources have been overrun by a record number of active cases since the lockdown initiated.
This extended lockdown may impact production of passive components, an already supply-strained market. Malaysia is where many Many Japanese and Taiwan-based passive component vendors operate their regional factory sites in Malaysia. During the lockdown, electronics, chemical, and pharmaceutical sectors were operating at 60% of the labor force for their production lines which affected the normal production of these plants.
Impacted Companies from Extended Lockdown:
Taiyo Yuden, a passive electronic components manufacturer, announced that its Malaysian subsidiary TAIYO YUDEN (SARAWAK) SDN. BHD. was closed May 29th to June 4th due to the Gawai Dayak holidays and factory maintenance. However, due to the confirmation of employee COVID-19 infection they have decided to extend factory shutdown till June 14th to ensure the safety of its employees.
Toyota Motor, a carmaker that produced close to 51,000 vehicles in 2020 in Malaysia has suspended its sales and manufacturing operations in compliance with the nationwide enforcement of the Full Movement Control Order set in place June 1. Toyota Motor president Ravindran Kurusamy states, “Toyota and Lexus stand in solidarity with the nation to fight against the pandemic by temporarily shutting down its non-essential services.”
Honda Malaysia has closed its business temporarily from June 1 to 14 in compliance of the latest lockdown imposed by the government. Its operations affected by this lockdown are the Honda Malaysia plant in Pegoh (Melaka), sales office, and dealer showrooms nationwide. The company will continue to serve customers through their after-sales services which are available at all dealerships nationwide. A Honda spokesman said the automaker will temporarily close two plants during the lockdown. These plants, which annually make about 100,000 cars and 300,000 motorcycles, are expected to resume production from June 15, he said.
How will this affect your supply chain? SiliconExpert could help
SiliconExpert has the data and expertise to help you proactively identify the components at risk and gain an in-depth look into their lifecycle statuses, find, and provide alternatives and available inventory from authorized distributors.
Also, in response to a need for insights and forecasted impacts, SiliconExpert developed a support mechanism that can help customers identify risks in their supply chain. This service combines factors of geo-location and known risks in a proprietary formula to determine the overall supply chain risk score by the supplier and by part number.
This service gives insight as it relates to this event as well as data that can help teams proactively mitigate impacts of future events through our supply chain module.
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By Hala Mohamed