Severe Weather Closes Southeast Asia Ports

Chip Supply May Be Affected
People shelter in Philippines
People take shelter under uprooted trees in Surigao del Norte Province, Philippines, on Dec. 19. (Roel Catoto/AFP/Getty Images)

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Severe weather disruptions hit Malaysia and the Philippines, leaving a trail of destruction among nations most prone to natural disasters.

Typhoon Rai, a super typhoon before slamming into the Philippines on Dec. 16, left 208 dead along its path. More than 440,000 people were displaced, with about a million affected, Mark Timbal, spokesman of the National Disaster Risk Reduction and Management Council, said Dec. 20.

Across peninsular Malaysia, a weekend of torrential rain displaced more than 61,000 people, shuttered roads and disrupted shipping. The downpour Dec. 17-18 amounted to a month’s average rainfall, news agency Bernama cited Environment and Water Ministry Secretary-General Zaini Ujang as saying. Rain subsided Dec. 19 and flood waters have started to recede.



Cargo delivery and vessel berthing at Malaysia’s Port Klang, Southeast Asia’s second-biggest port, will be delayed as access damaged roads, and workers have not been able to get to work, authorities said Dec. 18.

Authorities have said they would prioritize delivering essential goods such as food and medical supplies for now, while lenders including RHB Bank Bhd. and OCBC Bank (Malaysia) Bhd. are offering assistance to their affected customers.

The disruption comes days after Intel Corp. unveiled a $7.1 billion investment in Malaysia and said it expects the global chip shortage to last until 2023. The country is a major chip testing and electronics hub, and delays in shipments could add to the supply chain snarls that have battered the world economy.

Netherlands’ BE Semiconductor Industries NV cut its fourth-quarter revenue outlook Dec. 20 due to flooding affecting its Shah Alam facility in Malaysia. The company said revenue may drop 15% to 20% sequentially, exceeding the previous guidance for a 5% to 15% decrease.

Japan’s Nihon Dempa Kogyo Co., a producer of quartz crystals products used in telecom and industrial equipment, said its Malaysian plant was damaged and it will need time to resume production. Panasonic Manufacturing Malaysia Bhd. said its facility that makes fans and vacuum cleaners sustained damage.

Malaysia’s Notion VTEC Bhd. said its plant that makes computer numerical control machining has been affected.

— With assistance from Cecilia Yap and Ravil Shirodkar.

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