A second MCO may collapse the economy, says business leaders

A second nationwide movement control order (MCO), similar of March last year, would have a detrimental impact on Malaysian’s economy.

“We hope that the Government will look into the matter with great consideration as there is growing concern that should the country experience a second lockdown; many more businesses will shut down leading to a potential collapse of the economy.

“The most affected states by COVID-19 are also the commercial and industrial hubs of the nation, which will multiply the impact of any strict lockdown to be implemented,” said the EU-Malaysia Chamber of Commerce and Industry (EUROCHAM Malaysia) CEO Sven Schneider.

With the nation’s daily COVID-19 cases hitting four-digit mark, with one hitting above the 3,000 mark, many have speculated that the Government may impose another nationwide MCO.

Two days ago, the Federation of Malaysian Manufacturers (FMM) urged the Government not to impose another MCO, adding that such a move would be disastrous to the local economy.

Instead, its president Tan Sri Soh Thian Lai said the Government could consider a targetted conditional MCO (TEMCO), which is more localised with stricter standard operating procedures (SOPs) and travel restrictions.

SME Association of Malaysia also expressed similar sentiments yesterday, saying another nationwide MCO would collapse many small and medium enterprises (SME) and increase unemployment.

“Although we appreciate the need to strike that delicate balance between saving lives and saving livelihoods, a second round of total lockdown would be disastrous for SMEs, which would then be forced to lay off employees,” its vice president Chin Chee Seong was reported saying.

People are livid

Touching on the matter, Schneider said that while his business chamber supports the Government’s measures to curb the spread of COVID-19, the move should be balanced as in to protect the economy as well.

He added that at present, businesses are still restructuring and recuperating from the impact of the first lockdown due to the pandemic.

“Among the many challenges most businesses faced during the full lockdown were substantial revenue and financial losses, logistics challenges and supply chain interruptions as well as retrenchments.

“Despite the losses that they have faced, many businesses, particularly the European business community, have learned to not only abide by the SOPs set by the Government but to also adopt even stricter internal measures within the office or manufacturing site to ensure health and safety of employees,” Schneider said.

Instead, the business chamber leader urged the Government to impose a TEMCO as it would not affect businesses much.

“A TEMCO, complemented with strict SOPs imposed on travel and social activities, would be ideal as it would allow businesses to continue rebuilding themselves and stimulate the economy again,” Schneider opined.

Echoing Schneider’s sentiments, Tourism Agencies Association of Malaysia (MATA) said that another MCO will create havoc to the Malaysian economy, particularly its already-battered tourism sector.

“A full MCO is a no-go. My members were very upset when it was speculated that the Government may impose another lockdown.

“If this happens, many people will lose jobs and create a lot of problem among those who will lose their source of livelihood,” its president Datuk Mohd Khalid Harun told FocusM.

He reminded that Government many in the business community are opposed to MCO and urged the former to engage with the private sector before coming up with any decision.

“We can discuss about how to come up with stricter SOPs. Besides, many businesses have come up with their own regulations, so much so that customers who don’t comply are even denied entry to the premises.

Khalid added: “The need to have the vaccine is paramount to facilitate the already angry rakyat.”

Prime Minister Tan Sri Muhyiddin Yassin is scheduled to make an announcement on the matter on Monday. – Jan 9, 2021.

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