By Xavier Kong
A recent response to the number of drunk driving accidents has been the suspension of new applications for permits to sell alcohol by Kuala Lumpur City Hall (DBKL) and this has been met with backlash due to the arbitrary nature in which it was imposed.
Analysts have also noted the lack of impact the suspension would bring, especially during this period of the Conditional Movement Control Order (CMCO).
Ismitz Matthew De Alwis, CEO of Kenanga Investors Bhd, noted that, due to how the suspension was only for new alcohol permits with no mention of renewals, not much impact will be seen.
“We don’t see much impact, as we do not foresee any new entertainment outlets popping up in the near future due to what we have just experienced,” said De Alwis to FocusM, referring to the Covid-19 pandemic and the CMCO.
Vincent Khoo of UOB Kay Hian also noted the limited impact of the suspension at this point of time, pointing instead to a different issue.
“A bigger issue is the degree of consumption recovery, which has been weak todate since the start of the CMCO,” said Khoo to FocusM.
The Malaysian International Chamber of Commerce and Industry (MICCI) also warned against the move, citing repercussions down the line from this unilateral decision.
“We urge the Minister of Federal Territories and DBKL to exercise caution and refrain from any policy decision-making on introducing any blanket bans or freezing of permits or licences related to the retail of alcoholic beverages without consultation on facts and basis, and to reconsider the implementation of any such ban or freeze,” said Shaun Edward Cheah, executive director of MICCI.
He told FocusM that, the suspension may well be seen as unnecessarily punitive and inconsistent with Malaysia’s standing as a “stable, diverse, tolerant, progressive, and business friendly country,” especially since there was no proper industry consultation with the F&B industry, hotels, retailers, the tourism sector, and the relevant manufacturers or service providers.
Cheah, representing the members of MICCI, called on DBKL to engage the stakeholders on the matter, with a dialogue allowing better understanding on the issues and potential solutions, rather than making the decision without any industry consultation.
“Unilaterally introducing new restrictions may unfortunately bring about unintended consequences with far reaching impacts on tourism and the F&B industry, while worsening Malaysia’s international standing as a vibrant, modern and culturally diverse destination of travel,” said Cheah.
“In trying times such as the MCO and post-MCO, economic activities such as tourism are vital in rejuvenating the economy. The much needed recovery of foreign and domestic investors’ confidence in investing in Malaysia will be eroded if policies are seen to be able to be changed unilaterally and arbitrarily,” added Cheah.
Carlsberg Brewery Malaysia Bhd and Heineken Malaysia Bhd have both chosen not to comment at this time. – June 4, 2020
