Business community calls for aid to cope with latest restrictions

Malaysia's latest movement control order will be enforced in Kuala Lumpur (above), Putrajaya, Labuan, Penang, Sabah, Melaka, Johor and Selangor from today until Jan 26.
Malaysia's latest movement control order will be enforced in Kuala Lumpur (above), Putrajaya, Labuan, Penang, Sabah, Melaka, Johor and Selangor from today until Jan 26. PHOTO: BLOOMBERG

Malaysia's business community is calling on the government to announce aid measures, as a strict partial lockdown kicks in once again today.

While accepting the need for a partial lockdown in view of a drastic rise in coronavirus cases over the past month, business associations are also warning that many businesses had already used up their savings during the previous round of lockdowns last year.

Prime Minister Muhyiddin Yassin said on Monday that Malay-sia will once again implement a movement control order (MCO) in several states, including the entirety of Malaysia's biggest urban agglomeration, the Klang Valley.

However, he did not announce any immediate aid that could help tide businesses over the MCO period, which is likely to cause losses for many of them.

The first MCO, which lasted almost three months between March and June last year, saw the government announce blanket loan moratoriums, wage subsidy schemes and special grants for businesses.

The Malaysian Employers Federation (MEF) asked in a statement that the government considers reintroducing some of these measures, especially for small and medium enterprises.

MEF president Syed Hussain Syed Husman said the survivability of many companies now depends on the assistance that can be provided by the government.

"MEF hopes that some of the measures introduced during the MCO in March 2020, such as the Employment Retention Programme, Wages Subsidy Programme and loan moratorium for both employees and employers, especially the small and micro enterprises, will be reintroduced," said Datuk Syed Hussain.

Similar calls were also made by retailers and hotel associations in the country.

Malaysian Association of Hotels chief executive Yap Lip Seng urged the government to extend a wage subsidy scheme to help businesses retain their workers.

"In comparison with March 2020, we are in a worse situa-tion now, and we are expecting a bigger impact. The government must take immediate action to protect the industries in order to protect the people," Mr Yap said in a statement.

Malaysia Singapore Coffee Shop Proprietors' General Association president Ho Su Mong said that businesses in the food and beverage sector will lose at least 20 per cent of their income, as only takeaway food is allowed in areas where the MCO is implemented.

The Star reported Mr Ho as saying that the government should help subsidise rentals for small businesses.

Unlike the first MCO implemented last year - when only essential services were permitted - the International Trade and Industry Ministry said yesterday that it is allowing five essential economic sectors to continue operating at a limited capacity.

These sectors are manufacturing, construction, services, trade and distributions, and plantations and commodities.

Companies under these sectors should be registered with the ministry, Senior Minister Azmin Ali said. They will be allowed to have only 30 per cent of their workforce present at workplaces.

The MCO will be enforced in the states of Penang, Sabah, Melaka, Johor, Selangor, and the federal territories of Kuala Lumpur, Putrajaya and Labuan, from today until Jan 26.

Malaysia's daily coronavirus tally hit a high of 3,309 new cases yesterday, ahead of the partial lockdowns. The public healthcare system is at a breaking point, according to officials, with 30,390 active cases, exceeding the bed capacity of 28,674.

The Health Ministry said that from yesterday, it was asking patients who are asymptomatic or with mild symptoms of Covid-19 to isolate at home while it focuses on treatment for those with more serious conditions.

Three Cabinet ministers have tested positive in recent days.

Malaysia has recorded 141,533 cases and 559 deaths since the pandemic began.

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A version of this article appeared in the print edition of The Straits Times on January 13, 2021, with the headline Business community calls for aid to cope with latest restrictions. Subscribe