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KUALA LUMPUR: The EU-Malaysia Chamber of Commerce and Industry (EuroCham Malaysia) warned that a second, tax-like lockdown in March and April last year could lead to a potential collapse in the Malaysian economy as many companies would close.
Chief Executive Officer Sven Schneider said the states hardest hit by Covid-19 were also the nation’s commercial and industrial centers, which would multiply the impact of any strict lockdown that is put in place.
“We expect the government to look at the matter with great consideration (amid growing concern of a possible second strict shutdown),” he said in a statement today.
He said that while Eurocham Malaysia supported the government’s decision to respond to the Covid-19 threat to public health using proven strategies, it was not in favor of a restrictive total lockdown, which would likely not balance the needs of Malaysia’s recovering economy. .
Schneider said that today, companies are still restructuring and recovering from the impact of the first shutdown due to the pandemic.
“Among the many challenges that most companies faced during the full shutdown were significant revenue and financial losses, logistical challenges and supply chain disruptions, as well as downsizing, to name a few,” he said. .
He said that despite the losses they had faced, many companies and especially the European business community had learned not only to comply with standard operating procedures (SOPs) set by the government, but also to adopt even stricter internal measures within the office or manufacturing site. to ensure the health and safety of employees.
Schneider said that in light of this positive development, EuroCham Malaysia considered that instead of a complete lockdown, a more specific Conditional Movement Control Order (CMCO) would be ideal with an enhancement of its SOPs focused on more stringent measures on travel and social activities, would already allow companies to continue rebuilding and stimulating the economy again.
“If a second lockdown similar to March / April 2020 is to be implemented, it will have serious implications for both the nation and the economy,” he added. -Called
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