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03 Jun 2021  (685 Views) 
Economic downturn

Disruption to global supply chain
The disruption in the global supply chain is serious.

It will lead to higher prices for the materials and components. This will lead to inflation in the finished products. There will also be delays in the production of the goods.

The blame for the disruption can be partly blamed on the trade restrictions and policies adopted by the Trump administration, and now continued by the Biden administration.

When certain essential components and technology are barred for export to China, it causes the disruption in the supply chain.

The other factor, which is perhaps more important, is the disruption to production that is caused by the lockdowns imposed to combat the covid pandemic.

It will take a few months or years for the supply chain to return to pre-covid days. In the meantime, we have to live with the "new normal". 

Perhaps there is a bright side. The higher prices will force consumers to be more thrifty in the purchase and consumption of the manufactured products. We have to get away from the buy and throw habits. We should use our products for a longer time, rather than replace them after a short period of use.

Tan Kin Lian

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