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KUALA LUMPUR: Malaysian state governments may face legal action, particularly by industry players, if they prevent companies from resuming operations, said Chief Minister for International Trade and Industry Mohamed Azmin Ali.
In a statement Tuesday (May 5), he said the government seriously considers the refusal of some states to restart the economy.
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“Their actions are not based on legal authority and are contrary to federal government policy, especially given the fact that federal government policy has already become law and can be enforced across the country.” , said.
Starting Tuesday, companies in almost every sector of the economy can operate after the federal government’s decision on April 29.
READ: Kuala Lumpur companies open cautiously on day one after government eases COVID-19 restrictions
This decision to reopen the economy under the terms of the conditional movement control order was made with the utmost care, caution and responsibility, Azmin said.
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“A comprehensive and strict set of standard operating procedures has already been given … to all state governments,” he said.
If Malaysia extended its motion control order to June, the cumulative loss of national revenue will reach an estimated RM146 billion (US $ 33.8 billion), or 10.3 percent of GDP, according to official figures.
This would eliminate the economic success that Malaysia has achieved in the past four years, Azmin said, adding that the data was presented to the state’s top ministers at the National Security Council meeting on April 28.
“In this sense, the meeting agreed to reopen the economic sectors during the conditional movement order that begins today,” he said.
“The government’s decision to allow almost all sectors of the economy to operate to revive and revitalize the economy is expected to have a positive impact on the country’s economic growth and financial position, not only for the federal government but also for the state.
“Therefore, state governments are urged to cooperate in executing the federal government’s decision to regenerate the economy,” he added.
READ: COVID-19 tests are mandatory for all foreign workers in Malaysia
Azmin said the government has involved various stakeholders, notably industry associations, local and international chambers of commerce, as well as small and medium-sized companies, to measure the impact on employment, business sustainability and supply chains.
The minister also said that the implementation of the movement control order involves the entire country, including the states of peninsular Malaysia, as well as the federal territories, Sarawak and Sabah. It is done to effectively control the spread of COVID-19, in accordance with the Infectious Disease Prevention and Control Act.
“It should be noted that the federal government’s decision is valid according to … a uniform law with the purpose of preventing and controlling infectious diseases in Malaysia and that can be enforced throughout the country,” he added.
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