KUALA LUMPUR (May 5): Nestlé (Malaysia) Bhd (KL:NESTLE) said it is prepared to handle global supply chain disruptions due to its efforts in having alternative sourcing and inventory readiness, along with a broader local supply ecosystem.
In a sidebar on Tuesday, chief executive officer Juan Aranols told reporters that the company has spent years building backup supply options and contingency plans in Malaysia to reduce dependency on overseas markets that may also face volatility, such as the Middle East.
“We have been building resiliency in our supply chain and that means working with alternative sources of supply that can be activated,” said Aranols at an event with the Department of Islamic Development Malaysia (Jakim).
The remarks come as fast-moving consumer goods players in Malaysia are dealing with mounting margin pressures due to global supply chain volatility and higher input costs, especially as prices for raw materials are facing hikes.
Aranols added that Nestlé remains confident it can manage current uncertainties despite global volatility, adding that its recent first-quarter earnings, which saw a 27.1% increase in net profit, point to a positive outlook for the company in 2026.
However, he noted that exports may see a change in pacing as compared to the previous year’s expansion due to current global trade volatility but did not elaborate further.
“As you have been following the results, we had a very strong growth last year in exports. This year is probably a bit more moderate, but you saw it continued to be positive growth and we would expect that this trend will continue,” said Aranols.
One of its expansion plans last year included Nestlé’s Sri Muda factory in Shah Alam to produce its new coffee line, adding that it is also a sign of the local operation’s competitiveness within the company’s global network.
During the event on Tuesday, Nestlé and Jakim reiterated their collaboration as part of wider efforts to strengthen Malaysia’s halal ecosystem through the Synergy programme, which stands for "Strengthening Your Network and Ecosystem for Resilient Growth".
The programme covers education, small and medium enterprise (SME) development and supply chain improvements with the halal-certification industry.
In a press statement, Nestlé said its halal initiatives go beyond manufacturing and include student programmes such as Halal@School and Halal@STEM, entrepreneurship training, SME mentoring and halal certification support for logistics companies.