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PETALING JAYA: Tighter border controls have many companies concerned about the impact on their operations, especially as health authorities have warned that there may be an increase in Covid-19 cases during the winter months.
The President of the Federation of Manufacturers of Malaysia (FMM), Tan Sri Soh Thian Lai, said that a survey showed that companies were taking a pessimistic outlook for the rest of 2020, and respondents were concerned about disruptions to the supply chain. supply.
However, governments and businesses are now better prepared to face a potential spike in Covid-19 cases when winter hits compared to earlier this year, he said.
“In preparing for any foreseeable improvement in cases in the winter months, it would be natural for countries to tighten their borders, particularly in controlling the movement of people.
“We strongly believe that business and trade, including support services such as transportation and logistics, must continue to operate to ensure that the supply of goods, which is critical to the survival of people and economies in general, is not disrupted. “he said when contacted. .
He added that manufacturers were already working on some strategies to minimize the impact of the pandemic on their operations and supply chains.
“This includes establishing business continuity plans that would include securing alternative supplier sources and evaluating near-shore options to shorten supply chains and increase proximity to suppliers.
“FMM has also taken the initiative to establish the Asean Manufacturing Network, a platform for organizations related to manufacturing to communicate and collaborate on strategies to restructure regional production networks,” he said.
He also said that companies were shifting towards more digital processes, such as remote working and virtual communication platforms.
Malaysian SME Association President Datuk Michael Kang said that stricter border controls would negatively affect business operations.
“We understand that the government has to prepare for the possible rebound during the winter, but at the same time we have to take care of the economy,” he said.
“If not, there will be job losses, bankruptcies and social problems.”
Having strict quarantine rules, he said, was enough to control international arrivals without having to sacrifice economic growth.
“For example, we shouldn’t use a normal label to identify a quarantined person. We could use those electronic devices to monitor where people are in quarantine.
“It would also be cheaper than having centralized quarantine centers. If we do it this way, we can see that companies are moving smoothly as usual, ”he said.
He also cited Taiwan’s mobile phone tracking technology to ensure that people who were quarantined remain in their homes.
“It would be nice if we could have a similar device or an app that tracks people’s location the moment they enter the country.
“This will be good for business travelers who want to come to Malaysia. It will be better than a total ban, ”he said.
Chief Minister Datuk Seri Ismail Sabri Yaakob previously said that citizens of countries with more than 150,000 Covid-19 cases would not be able to enter Malaysia as of September 7.
The Star also reported that the National Association of Private Educational Institutions is concerned that the entry ban will significantly affect the economy.
Its president, Adjunct Professor Elajsolan Mohan, said it would “greatly affect” new student enrollment rates, especially since the majority of Malaysia’s international student population comes from countries such as India, Indonesia and the Philippines.
He said the move would create a ripple effect on the sustainability of Malaysia’s colleges and universities, as well as the country’s economy.
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