REPRESENTATIVES from the manufacturing industry are trying to avoid having one of their worst fears realised again: the imposition of a total lockdown, which would severely affect businesses and may lead to more job losses, similar to the first movement control order (MCO 1.0).
Following news of the Government considering a total lockdown to regain control of the COVID-19 infection rate which went to an all-time high yesterday (6,075 new cases), the Malaysian Automotive Component Parts Manufacturers (MACPMA) released a statement to voice out its concern on the matter.
“The industry is already grappling with rising cost of production (e.g. rising raw material and shipping costs), output reduction, skilled labour shortage and margin squeeze, just to name a few. A total lockdown would deal a severe blow to the industry,” said MACPMA president Peter Lim.
According to Lim, many automotive parts manufacturers are dependent on export business and Malaysia’s automotive component parts manufacturers export items to over 60 countries around the world.
Not only that, the industry also employs about 250,000 workers including professionals such as engineers, designers, data analysts and the like.
“We cannot afford another total lockdown, since last year’s MCO 1.0 resulted in a RM1.15 bil loss from export sales alone. As it is, many of our members are grappling with disruptions to their businesses due to the COVID-19 outbreak, with many anticipating financial and operational consequences, especially the small and medium enterprises (SMEs),” Lim explained.
Echoing this sentiment, the Malaysian Iron and Steel Industry Federation (MISIF) believes that a full lockdown would have a detrimental impact on the economy and further stifle economic recovery, since most economic activities would not be permitted.
However, MISIF recognises the need for stricter measures to be implemented and have provided several suggestions on implementing stricter standard operating procedures (SOPs) for the MCO 3.0.
- Assure the business entity and financial market that there will be no total lockdown, whether nationwide or in states with high infection rates, such as Selangor, to keep business confidence.
- Allow the economic sectors to operate while instituting stricter SOPs to quickly reduce the infection rates break the chain of transmission.
- Maintain the pace of the economic recovery plan by providing necessary aids, including the loan moratorium, wage subsidy programme, financing assistance, reduction in business costs such as utility costs, statutory contributions, financing rates.
- Accelerate the immunisation programme to achieve herd immunity by promoting vaccination programme to the economic sectors and participation to the economic frontline workers to support the Government to achieve herd immunity.
Meanwhile, the Chemical Industries Council of Malaysia (CICM) also gave some suggestions of its own, including:
- A reduction of workforce at site and continuance of work from home (WFH) policy should be instituted as much as possible by employers.
- Stricter SOP enforcement / adherence including imposing significant fines or even revoking license to operate (as the case warrants) for non-compliance.
- Companies that are labour intensive should conduct swab test on employees every 2 weeks before allowing them to enter into premises. – May 20, 2021
