WITH businesses languishing due to the prolonged movement control order (MCO 2.0) and ambiguity on standard operating procedures (SOPs), several influential business groups under the Industries Unite platform have come forward to voice their disagreement on the lockdown extension.
With that in mind, the SME Association of Malaysia urged the Government to stop making unilateral decisions and instead form a tripartite body to manage the COVID-19 crisis, while keeping the economy running.
“Here is the deal. COVID-19 has been around for a year and we must accept the fact that it will not be going away anytime soon.
“Vaccines are not going to get rid off COVID-19 completely and we need to accept that this will be the new norm. So, the Government should form a tripartite body consisting of Government, business and public representatives.
“Let us draft specific SOPs for individual industries together and find a way to adapt to the situation like what China and Taiwan are doing,” its president Datuk Michael Kang told FocusM.
Yesterday, Industries Unite voiced opposition to the MCO 2.0 extension, calling it a death knell for more businesses and warned of massive unemployment.
“We regret the Government’s decision to extend the MCO until the 18th. We expect to see more business closing down due to this.
“Unemployment rate will also rise and will put further stress on the economy and vital supply chains,” the group said.
Elaborating further, an exasperated Kang said the Government itself admitted that the previous MCO 1.0 had cost the Government RM2.4 bil daily, hence the recent decision will only make matters worse.
He added that the tripartite body was needed as the Government has little idea on what is happening on the ground in terms of people’s suffering as they are unable to make ends meet.
“People are losing jobs and the MCO 2.0 extension will only make people starve. We are already hearing cases of people stealing food and medicine. Basically, crime rates are soaring now.
“And why is the Government reviewing things every two weeks? Uncertainty does not bode well for businesses and the economy. We need to come up with long-term plans to balance lives and livelihood,” Kang pointed out.
Citing China as an example, the SME leader said whenever the Government identifies a COVID-19 case at an area, it only imposes a lockdown at the particular place, not the entire nation.
Kang added that many micro and medium-scale businesses are closing down, warning the nation may see unemployment numbers spiking by end of the month.
Let businesses operate, stop double-standards
“During MCO 1.0, we barely managed to keep things afloat and many businesses managed to retain their staff. However, we can no longer sustain MCO 2.0 and many of our members have laid off workers, keeping employees at a bare minimum to keep the business afloat,” Kang remarked.
Citing an example, he said that in Sibu, Sarawak alone, about 1,000 people have lost their jobs due to MCO 2.0 and the numbers could be more damaging across the nation.
“And the Government did not extend an automatic loan moratorium this time. Many SMEs are getting notices from banks to pay their dues but the former is struggling to survive,” lamented Kang.
He also said the tripartite body was vital as there seems to be a communication breakdown between the various agencies in terms of implementing the SOP.
“The National Security Council (NSC) says one thing, but the police and local authorities have different interpretations. Let us talk with one another and get things streamlined,” he added.
Malaysia Retail Chain Association (MRCA) echoed Kang’s sentiments, saying the Government should talk to businesses first before making any decisions on MCO extensions.
“We’re not trying to be confrontational but talk to us, please. Identify cluster areas and impose MCO at the specific place, not a blanket lockdown across the board.
“We need to look at the sustainability of whatever we’re doing. The current MCO is killing a lot businesses in the country,” its president Shirley Tay told FocusM.
She said during MCO 1.0, revenue stream among retailers dropped by 50% but managed to recover after the Government relaxed lockdown rules with some retailers gaining 90% of its sales back.
“But how long do you think we can sustain, especially the small-time retailers? Yes, the Government has announced various schemes under the stimulus packages and we appreciate that but it’s insufficient.
“Many have lost jobs and families are struggling to put food on the tables. What we are going to see is a spike in crime which is already happening,” she added.
Tay also questioned the Government’s rationale on barring certain businesses such as hair salons from operating.
“If you look at hair dressing salons, they are well-equipped with personal protective equipment (PPE). Have we heard of any clusters stemming from hair salons? No. They adhered strictly to SOP but are\ disallowed from operating.
“But take a look at night market traders which are allowed to operate. Do they even follow personal hygiene measures? They don’t even wear their masks properly which poses a serious risk to everyone there,” she observed.
Tay reminded the Government that SMEs form the backbone of the Malaysian economy, and any disruption to their business will not bode well to the nation’s growth.
“The Government is doing a good job in managing the pandemic but consult us too. Let us play a part in the managing the health crisis.
“And this every two-week extension is causing a lot of uncertainties and pressure to businesses,” she added.
Both SME Association and the Malaysia Retail Chain Association are part of the Industries Unite platform. – Feb 4, 2021.
