Allow manufacturers to operate, extend salary subsidy to 6 months - Mujahid

CORONAVIRUS | The government should allow the manufacturing sector that is involved in producing non-essential products to operate at half its capacity during the movement control order (MCO), a former minister suggests.

Mujahid Yusof Rawa said this is necessary to ensure continuity of products to meet both domestic and international needs.

In a statement, the former de facto Islamic affairs minister also suggested that the government extend its salary subsidy from three-months to a period of six months.

"The salary subsidy programme is very much welcomed, but I would like to propose that it is extended from three months to six months to help industry players handle the situation after the actual impact (of Covid-19 hits).

"Besides this, the government should also open a discussion to ease restrictions and allow non-essential manufacturing industries to operate at 50 percent of its manpower to fulfil both domestic and foreign needs.," he said in the statement.

Mujahid, who is Parit Buntar MP and Amanah vice-president, said that the domestic economy has been badly affected by the pandemic with growth estimated to be in the negative.

Most industries such as small and medium enterprises involved in manufacturing, he added, suffered losses of up to 50 percent which resulted in the laying off of workers or staff having to take unpaid leave or salary cuts.

He also suggested that workers who were given three-month moratorium on their credit instalments should not be burdened with compounding interests afterwards.

"The interest rate should be lowered or even reduced to ease the burden of workers after the moratorium ends.

"The government is also urged to help self-employed workers, especially those in the tourism sector which has been badly hit. Their source of income which comes from chalet operators, homestay, and restaurateurs and tourism services are affected by the lack of tourists coming into the country throughout 2020."

The government had imposed the MCO starting March 18 to break the Covid-19 chain of infection in the country.

It had since been extended three times and the latest extension is expected to end on May 12.

Under the MCO, only essential services and certain sectors deemed as essential are allowed to operate in stages.

To ease the burden of SMEs, Prime Minister Muhyiddin Yassin announced last month that the government would introduce a RM5.9 billion salary subsidy programme to prevent loss of jobs and earnings in the wake of the Covid-19 outbreak.

Under the Prihatin economic stimulus package of RM250 billion, the government will set aside a RM600 monthly payout for three months to all workers earning below RM4,000 on condition that the participating companies do not slash their workers' salaries. - Mkini