By: Rafina Syhadilla (rafina@upm.edu.my)

The Movement Control Order (MCO) opens a new chapter for the country's food supply chain and security. Supply chain refers to the chain of processes that complement each other to distribute products and services from the input sector to the consumer dining table. It's like a chain. If one of the processes is affected, the supply chain will be disrupted as what has happened in the early stages of MCO implementation.

MCO directly disrupts the existing supply chain. This happened when MCO closed some major suppliers in the supply chain such as restaurants, night markets, wholesale markets and small shops that do not have permanent premises. Among the directives that seriously affected the supply chain was the closure of the wholesale market. This is because the wholesale market is a major hub where food commodity exchanges take place between suppliers (producers) and buyers (small wholesalers, retailers and institutional and public consumers).

Wholesalers are the middlemen. Wholesalers also determine daily price levels as a reference to retailers and manufacturers. The closure of the wholesale market disrupts the smooth running of business processes between producers and traders as well as consumers.

However, guarantees have been given by the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) and the Ministry of Agriculture and Food Industry (MOA). The supply chain of national necessities is very efficient taking into account local production and imported supplies.

Food imports in 2018 amounted to RM40 billion a year. Malaysia also has good relations with exporting countries to ensure the continuity of the country's food supply.

Monitoring by KPDNHEP enforcement throughout the MCO found that the supply of essential goods remained adequate in all supermarkets throughout the country. Therefore, Malaysians do not need to panic or be afraid.

Date of Input: 18/12/2020 | Updated: 11/10/2021 | hasniah