Business leaders: Emergency wont hurt businesses but MCO will

The business community is more concerned with the return of the movement control order (MCO) than the emergency proclamation, which is expected to last until Aug 1.

This is because the implementation of the two-week-long MCO in five states and three federal territories may cause business closures while the proclamation of emergency is meant to contain the third wave of Covid-19 and business activities will not be affected as pledged by Prime Minister Muhyiddin Yassin.

SME Association of Malaysia president Michael Kang said he expects between five to ten percent out of a million businesses are at risk of closing down if they do not receive any government assistance within two weeks of the MCO's reinstatement on Jan 13.

"More than 30 percent of SMEs (small and medium enterprises) shut down if the MCO is extended to two months.

"I expect a worse scenario compared with the 2020 lockdown. Back then, business operators were backed by strong cash flow, but now, most cash flow, cash reserves are either gone or used in the reopening of businesses.

"Those involved in the tourism sector and relevant industries, food and beverage, private education and hotels continue to suffer. On top of that, pub operators are yet to be allowed to resume business," he told Malaysiakini.

Kang, who spoke on behalf of 20,000 of SME Association members and close to one million SME businesspersons in Malaysia, urged the government to impose a loan moratorium and continue with its economic relief measures, such as wage subsidies and rental relief.

"In fact, SME Association is against the return of MCO. We want a solution to 'live' with Covid-19. Countries like Singapore, Taiwan and China were doing fine without resorting to lockdown measures (now).

"As for the emergency, it's not worrying because it does not affect business activities and relevant policies. It only restricts political activities so (the government) can focus on containing the pandemic and develop the economy," he said.

Kang urged the government to bring business representatives into the independent committee advising the Agong on whether the emergency proclamation was still necessary to provide perspective from the business sector.

Malay Chamber of Commerce Malaysia (MCCM) deputy president Norsyahrin Hamidon said he respects the ruler's decision to proclaim a nationwide emergency to address the pandemic and economic issues.

However, he urged the government to issue a detailed guideline on the national emergency to avoid any confusion among the business fraternity.

Norsyahrin also raised concern that the MCO 2.0 could impact the businesses of some 500,000 Malay traders and businesspersons.

"Most of them cannot survive a two-month closure without any assistance from the government. When businesses close, millions of employees and their family members will be affected too," he said.

Meanwhile, Malay Economic Action Council (MTEM) fellow Ahmad Yazid Othman urged the government to allow more businesses that did not result in crowds at their premises to operate so that they could survive another lockdown.

"I hope the community will be given more space and the MCO will not be so strict like last time," he said.

Yazid, however, raised concerns over the proclamation of emergency that restricted Parliament from sitting.

"I am of the view that the emergency will not affect business. (But) the economic condition becomes more unstable due to political instability. This has annoyed various parties.

"Although I admit that I am concerned when the Parliament is suspended, we may not have other options for us to calm down and focus in combatting the pandemic. So, I agree with the proclamation of the emergency," he said.

In a statement today, the Federation of Malaysian Manufacturers (FMM) said its members know how to cope with the MCO 2.0.

"The business fraternity is glad to know that businesses can continue to function and that the proclamation of emergency will not impede business operations.

"The industry hopes that with the Covid-19 vaccinations to be received soon and the current layered implementation of the MCO in the country, it will effectively flatten the curve and bring down the number of Covid-19 cases and that the emergency order could be withdrawn as soon as possible.

"In the meantime, FMM continues to remind the industry to strictly observe the Covid-19 precautionary measures and be diligent and be vigilant in adhering to the SOPs (standard operating procedures) as breaking this chain of infections is a concerted effort of everyone," it said. - Mkini