Malaysia must strengthen its domestic supply chains in key strategic sectors to better prepare for future geopolitical risks and global supply disruptions, Deputy Finance Minister Liew Chin Tong said today.
Speaking at the ACCA Mid-Year Tax Focus Conference 2026, he said the country must shift away from a “just-in-time” approach towards a “just-in-case” strategy to improve long-term resilience.
He noted that both the government and private sector can no longer assume global trade flows will remain stable, given increasing geopolitical uncertainty.
“If the next shock comes, we have to deal with strengthening domestic recycling as well as the local ecosystem of plastic and medical supplies,” he said during a fireside chat at the event.
The session was moderated by ACCA ExpertLink & TraTax executive director Thenesh Kannaa.
Using plastic recycling as an example, Liew said the issue was not necessarily a shortage of supply, but rather a pricing imbalance, where local recyclers operating under international standards struggle to compete with cheaper imported materials.
He added that Malaysian recyclers already meeting European and United States food-grade standards should ideally be able to supply local users, which would strengthen circularity and resilience during crises.
“One side is selling at European prices, while the other is buying from China at Chinese prices. It may not necessarily be a supply issue per se, but a pricing issue that can be addressed through the right policies,” he said.
Liew suggested that government incentives could help close the gap by encouraging local buyers to commit in advance to purchasing recycled materials from domestic producers.
On tax reform, he said consumption taxes are inevitable but should not be the primary focus, stressing that Malaysia should instead prioritise raising wages and increasing median incomes so more people are able to contribute to the income tax base.
