Image credit: New Straits Times
PETALING JAYA: More trade groups and associations have called on the government to allow their members to resume operations, amid news that the number of new Covid-19 cases in Malaysia hit a daily record high of 11,079 today.
The Chinese Chamber of Commerce and Industry of Kuala Lumpur & Selangor (KLSCCCI) today urged Selangor Mentri Besar Datuk Seri Amirudin Shari to lift district-level lockdowns and adopt targeted building-by-building lockdowns.
In a statement, KLSCCCI outlined various approaches that the chamber claimed are better, more effective and less damaging to the state and businesses. These include mass testing, doing away with classification of sectors as essential or non-essential, restrategising to manage the endemic situation, and vaccination as the ultimate solution.
KLSCCCI noted that main economic activities such as manufacturing and retail – including shopping malls and standalone shops – contributed a mere 9.7% and 0.8% respectively to the total number of infections in May 2021.
“Businesses of different scales and sizes are in dire straits and teetering on the brink of bankruptcy and closure after more than 17 months of various degrees of MCOs,” it said, adding that it hopes to seek an urgent meeting with the mentri besar to further explain and articulate its proposed approaches and measures.
KLSCCCI’s survey of business prospects and its member, Malaysia Retail Chain Association (MRCA), indicated highly pessimistic business conditions. The MRCA survey conducted in June 2021 showed that 97% of the retail operators have 4.5 months of cash flow left. By now, their cash flow will last for only three months.
“We are deeply concerned that if the state government continues with the extension of phase one and EMCO (enhanced movement control order) lockdowns after July 16, the economic devastation will be even deeper, long lasting and more damaging as many businesses are unable to survive through a prolonged period of lockdown,” it said.
The Malaysian Automotive Association (MAA) is appealing to the government to allow the automotive sector (workshops and distribution centres for passenger and commercial vehicles and spare parts) to operate immediately, albeit at certain capacity levels and with strict standard operating procedures (SOPs) in place in states under the EMCO, Phase 1 and Phase 2 of the National Recovery Plan (NRP).
Selangor and Kuala Lumpur accounted for close to 50% of Malaysia’s total industry volume a year. Many of the key automotive companies for both production of vehicles and components are in these two areas. In addition, some MAA members have their sole and or central distribution centre (for vehicles and spare parts) in Selangor and Kuala Lumpur.
MAA also hopes that the government will allow factories and distribution centres for vehicles and spare parts, and new vehicles showrooms to operate in Phases 1 & 2 of the NRP.
MAA opined that the EMCO, Phase 1 and Phase 2 of NRP approach needs to be reviewed and reconsidered, especially for key economic zones like Selangor, Kuala Lumpur, Perak, Johor, Penang and Negri Sembilan.
“The whole supply chain in the automotive sector has been seriously affected particularly by the complete shutdown of operations in EMCO states/localities like Selangor and Wilayah Persekutuan Kuala Lumpur. Feedback received from many of our members indicated that business operations even in non-EMCO states are hampered due to disruptions in the supply chain,” said MAA president Datuk Aishah Ahmad.
During the EMCO, not a single business activity from the automotive sector is allowed to operate, while for states under Phase 1 and Phase 2 of the NRP, vehicle showroom and distributions centres are still not allowed to operate despite the opening up of most of the other economic sectors; production and distribution of automotive products (motor vehicles, components and parts), and sales of vehicles had halted since June 1, 2021. The stoppage of all these activities will have implications for the entire automotive ecosystem nationwide.
Meanwhile, the Malaysian Institute of Certified Public Accountants (MICPA) urged the government to allow accountants to work from office subject to their complying with SOPs and to expedite the approval for accountancy firms to reopen.
“Accountancy practices, especially small and medium practices, are suffering through the pandemic. With the implementation of the full MCO, accountancy firms are not allowed to work from office. Many cannot work from home due to the lack of appropriate facilities and inability of their clients to produce the necessary accounting records needed for audit or tax purposes. Meanwhile, all of them are incurring heavy staff costs and overheads but are facing challenges in collecting their fees from their clients due to the FMCO,” MICPA said.
It added that accountants are an essential part of the business ecosystem because they represent financial frontliners in the provision of services to the business community such as audit, tax and accounting services.
“Representations have been made to the government authorities for approval of accountancy services to be treated as essential services but the process has been made difficult with too many ministries being involved and a straightforward approval has now dragged on for almost a month.
“The situation is urgent as many practitioners see their cash flow being choked whilst staff salaries need to be paid,” MICPA said.
Source: https://www.thesundaily.my/business/allow-us-to-resume-operations-appeals-grow-louder-YL8058771