Manufacturers call for stricter SOPs, not total lockdown

 

The Federation of Malaysian Manufacturers (FMM) has called on the government to impose stricter standard operating procedures (SOPs) instead of a total lockdown.

It said a movement control order (MCO) that is a total lockdown, whether nationwide or in states like Selangor, could cause irreparable damage to the economy.

“The impact of MCO 1.0, which was an almost full lockdown situation where only essential services were allowed to operate at 50 percent capacity, was very severe on the economy, resulting in a 17.1 percent drop in GDP in the second quarter of 2020 and loss of jobs hitting 826,100 in May 2020.

“The government had to pump in various financial aids to help the industries as well as individuals to wade through this unprecedented pandemic situation, without which many businesses would have had to fold their operations,” said FMM president Soh Thian Lai.

As such, he said the government should stick with the second model, which allowed economic sectors to operate, but with stricter SOPs.

This includes stricter restrictions on mobility and encouraging people to stay home. rescheduling work shifts in plants to have fewer people working at a time, and working from home for companies that can.

Speculation is rife that the government may implement a stricter movement control order (MCO) as the Covid-19 situation worsens.

Yesterday, Malaysia hit a record high in new infections and deaths over the past week have reached unprecedented levels.

Health Minister Dr Adham Baba had said a full MCO may be necessary for Selangor, due to the high number of cases in the state.

However, Finance Minister Tengku Zafrul Abdul Aziz had said that curbing Covid-19 should not come at the expense of the economy.

The FMM said besides keeping businesses open, the government must also continue providing financial aid such as loan moratoriums and wage subsidies to assist affected industries.

It said that the vaccination process should also be sped up so that the country can achieve herd immunity.

The FMM is not the only group opposing a total lockdown.

Yesterday, the American Malaysian Chamber of Commerce (Amcham) said a lockdown similar to MCO 1.0 would negatively impact investment sentiments and threaten the positive momentum of the country’s trajectory towards economic recovery in the current quarter.

“Such an approach does not take into account the learnings and infrastructure put in place since last year and would have an immediate negative impact on the already hard-hit local economy.

“It would also have long and far reaching repercussions for businesses currently located in the country and their role in global supply chains,” Amcham chief executive Siobhan Das said.

The EU-Malaysia Chamber of Commerce and Industry (Eurocham) also voiced similar concerns. - Mkini

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