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FMM concerned businesses will collapse if another MCO implemented

FMM In The News: THE SUN DAILY, PETALING JAYA, Friday, January 8, 2021 - The Federation of Malaysian Manufacturers (FMM) is concerned that a second Movement Control Order (MCO) could lead to the collapse of businesses and industries in Malaysia.

FMM president Tan Sri Soh Thian Lai said business and economic activities must be allowed to continue, possibly under stricter Standard Operating Procedures (SOPs).

“We support a targeted Conditional Movement Control Order (CMCO) which is more localised coupled with stricter SOPs and travel restrictions but not a total lockdown similar to that implemented in March/April 2020.

“As it stands, the business fraternity and the economy are still reeling from the impact of the Covid-19 pandemic and the first lockdown, and most have yet to recover to the pre-Covid-19 level,” he said in a statement today.

Soh said apart from a substantial drop in revenue and financial losses, businesses also faced severe challenges in terms of sustainability, employment and productivity during the first MCO.

“Should a second total lockdown be instituted, there is grave fear over the collapse of the business sector and economy given that several major states serve as the country’s economic hubs,“ he added.

Soh said based on feedback from FMM members, a lockdown lasting for four weeks and more will reduce business sustainability by about one to three months.

“There are also grave concerns of whether the government can continue to provide financial aid to businesses, especially wage subsidies and loan moratoriums, to the people impacted by a second total lockdown given the near ending of most of the key aid that are currently being provided by the government which have been instrumental in supporting the recovery of businesses and ensuring job security thus far,“ he said.

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