Coronavirus: Critical for businesses to reopen, say trade bodies in Malaysia

KUALA LUMPUR • Fifty-seven chambers of commerce and industry associations in Malaysia said it was "critical for businesses to resume operations nationwide", as they took an opposite stance to nine states that initially rebuffed the federal government's call to reopen most businesses from Monday.

The chambers in a joint statement yesterday urged all state governments to "restart the economy together, given the close interlinking of supply chain among states".

The statement, posted on the Facebook page of the Malaysian International Chamber of Commerce and Industry (MICCI), added: "As leaders of the major chambers of commerce and industry associations in Malaysia, we are also committed to ensuring strict adherence to the established standard operating procedure by employers, who are responsible for the overall health and well-being of their employees."

Apart from MICCI, the other signatories include the Chinese, Malay and Indian business chambers, the Federation of Malaysian Manufacturers, the SME Association of Malaysia and Master Builders Association Malaysia.

The joint statement reflected the painful debate in Malaysia, and around the world, over how soon and how much to reopen economies that have been degraded by the virus.

Malaysia yesterday entered the 50th day of the movement control order (MCO) that was imposed on March 18 to curb the spread of the coronavirus. But since Monday, it began its more relaxed "conditional MCO", or CMCO, by allowing most businesses to reopen.

Prime Minister Muhyiddin Yassin, when calling for the reopening of most sectors of the economy from Monday, said the country suffered RM2.4 billion (S$788 million) in losses daily during the MCO, with total losses currently estimated at RM63 billion.

Nine of 13 Malaysian states initially refused to adopt the CMCO, with some saying discussions were first needed at state level to find out if they were ready to reopen.

The nine states included opposition pro-Pakatan Harapan states Kedah, Penang, Selangor, Negeri Sembilan and Sabah. But they also included states from Tan Sri Muhyiddin's own ruling alliance - Perak, Pahang, Kelantan and Sarawak.

This led Senior Minister for Economic Affairs Azmin Ali to warn that the states that refused could face lawsuits from businesses.

Opposition leader Anwar Ibrahim, who waded into the fray on Tuesday, said the states were not consulted about the more relaxed MCO. "Who is this minister representing? Industries? Corporations? Under the federal system, states have the right to make decisions," he said in a live Facebook session. "What is wrong with negotiations? Negotiate with them. I don't think there would be a menteri besar or chief minister who is not concerned about unemployment issues."

The joint statement by the chambers said: "The decision was made to prevent a further collapse of the economy, as companies can no longer afford to remain closed while they continue to have financial obligations to meet and continue to provide employment for workers, which translates into safeguarding the livelihood of the people."

By yesterday, apart from Penang and Sabah, the other states that earlier rebuffed the federal government have decided to allow the reopening of most businesses after discussions at the state level, the New Straits Times daily reported.

Selangor Sultan Sharafuddin Idris Shah said the state, which surrounds Kuala Lumpur, must follow the more relaxed CMCO.