Assessing Malaysia supply chain vulnerabilities construction of comprehensive stress index
List of Authors
  • Ahmad Azam Sulaiman @ Mohamad , Mohd Kyizzad Mesran

Keyword
  • Global Supply Chain Pressure Index (GSCPI), Principal Component Analysis (PCA), Supply Chain Disruption and Economic Indicator

Abstract
  • With Malaysia a key player location in international trade, this article details the specific pressures that have been put on global supply chains over the past 24 years. This paper emphasis on the Malaysia Supply Chain Pressure Index (MSCPI). In the case of Malaysia, this broad message had been previously confirmed in evidence from existing indices (such as those provided by the Federal Bank Reserve of New York) but these data have a handful of evangelical uses. This study will consider Malaysia as an interest country since they had obtained various trade, infrastructure and manufacturing routes into the Malaysia economy; this study will construct a supply chain index via Principle Component Analysis (PCA) to combine multiple discretely limited data from the year 1990–2023.The study incorporates key variables such as Malaysia's Industrial Production Index (IPI), Logistics Performance Index (LPI), and other macroeconomic indicators including labour force, climate factors, as well as geopolitical risks. The results of the study show significant fluctuations in Malaysia's supply chain pressures, with significant increases along with economic disruption at the global level. Study also identified rising costs, climate change, and geopolitical disruptions as major contributors to supply chain stresses. This study will provide a critical insight to guide the policymakers and industry stakeholders to understand the weak links in supply chain network configuration by using MSCPI. In summary, the study develops a composite index specific to Malaysia for measuring its supply chain vulnerabilities that can assist better policy decisions amidst changes in the global economy. With a supply chain index, strategies can be formulated to help avoid future disruptions of the supply chain while providing continued economic stability and growth as well.

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