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FMM PRESS STATEMENT: Industry Welcomes MITI’s Announcement on Economic Sectors in the Essential Services Allowed to Operate During MCO Period in Six States

Kuala Lumpur, January 12, 2021 – The industry welcomes the announcement on the list of economic sectors in the essential services allowed to operate during the Movement Control Order (MCO) period announced by the Ministry of International Trade and Industry (MITI) today. The announcement has given the reassurance to the manufacturing sector that their operations can continue seamlessly with a straightforward procedure to operate coupled with stringent compliance to the comprehensive Standard Operating Procedures (SOPs) which would enable a smooth flow of operations and business continuity during this period.

Nevertheless, we note that a couple of key manufacturing sectors have not been included as part of the economic sectors in the essential services as announced by MITI which include the non-PPE related textile and apparel manufacturers, majority of the ceramic product manufacturers including sanitary ware manufacturers, glass manufacturers, toy manufacturers, stationery product manufacturers and footwear manufacturers who are all mainly export-oriented industries and would have export obligations to meet. Included in this group are also industries that have processes/equipment that must run on a 24-hour basis like the cement, ceramic and glass manufacturers and cannot be shut down as the cost to shut down and recommission the equipment will be very costly to the industry. Due consideration should be given to these companies to continue to operate during this MCO period.

FMM also urges the Government to continue in the relief assistance, more so for those not allowed to operate, in the form of the wage subsidy and targeted bank loan moratorium as well as consideration to exempt/reduce/delay some of the statutory payments such as HRDF levy, EPF and SOCSO contributions, quit rent, assessment, etc as well as to consider further energy cost discounts to mitigate some of the cost implications arising from this MCO period.

In the meantime, the industry is cognisant of the fact that all efforts must be taken to flatten the curve of the Covid-19 infections which are at a critical level and will continue to strictly observe the COVID-19 precautionary measures and be diligent and vigilant in adhering to the SOPs as breaking this chain of infections is a concerted effort of everyone.

Tan Sri Dato’ Soh Thian Lai
President, Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity and No Corruption

About FMM
The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 10,000 member companies (3,000 direct and 7,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

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