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PETALING JAYA: The Malaysian Manufacturers Federation (FMM) is concerned that a second Movement Control Order (MCO) could lead to the collapse of businesses and industries in Malaysia.
FMM President Tan Sri Soh Thian Lai said business and economic activities should be allowed to continue, possibly under more stringent Standard Operating Procedures (SOPs).
“We support a targeted Conditional Movement Control Order (CMCO) that is more localized along with stricter SOPs and travel restrictions, but not a total lockdown similar to the one implemented in March / April 2020.
“As it stands, the business fraternity and the economy are still recovering from the impact of the Covid-19 pandemic and the first shutdown, and most have not yet recovered to the pre-Covid-19 level,” he said today at a release. .
Soh said that in addition to a substantial drop in revenue and financial losses, companies also faced severe challenges in terms of sustainability, employment and productivity during the first MCO.
“If a second full shutdown is instituted, there is great fear of the collapse of the business sector and the economy as several major states serve as the economic centers of the country,” he added.
Soh said that based on feedback from FMM members, a lockdown lasting four weeks or more will reduce the sustainability of the business by one to three months.
“There is also great concern about whether the government can continue to provide financial assistance to businesses, especially wage subsidies and loan moratoriums, to those affected by a second full shutdown given the near end of most of the key aid being currently provides by the government that have been essential to support the recovery of companies and guarantee job security so far, “he said.
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