Here is an appeal to the government from a group of industrialists and businessmen about the MCO as well as suggestions on how to help the economy during this Covid 19 pandemic.
I strongly urge the government to listen to these business people because they represent the real private sector economy. Otherwise known as the real Malaysian economy.
Please bear in mind that the size of the Malaysian economy (GDP) is worth over RM1,440 Billion or RM1.44 trillion. It is this economy which generates tax revenue for the Government to fund (for example) RM322 billion for Budget 2021.
The GDP of the economy is more than four times the size of the Government Budget. It is extremely very important that the Government pay close attention to the health of the economy which generates tax revenue for the government to plan its Budget.
I fear that the Government's tax collection for this year 2021 is going to be severely reduced because so many businesses have closed down and the economy is operating at far below its capacity. Hence Budget 2022 (due in October this year) is going to face serious funding issues. The Government better begin planning for this worse case scenario. Rather than calling on EPF for money (which belongs to the workers) it would be far better to assist the economy to heal and grow by itself.
These businessmen who have written this appeal represent the sharp end of the stick. Unlike GLCs or Government agencies they are the real private sector and they are closely in touch with what is going on on the ground.
Their appeal letter is just one page in length and to the point.
These are practical business people.
Do read my comments below.
PRESS RELEASE
2nd February 2020
Dear Sirs,
RE: JOINT STATEMENT BY ‘INDUSTRIES UNITE’ ON MCO EXTENSION
TO 18th FEBRUARY 2021
We regret the government's decision to extend the MCO until the 18th.
Whilst public health and safety is of paramount importance,
- we expect that we will see the death rate of businesses spike over this period.
- The unemployment rate will also rise as well.
- This inevitably will put further stress on the economy and vital supply chains
- and the economy is a complex ecosystem.
Thousands of retail outlets have closed down since MCO 2.O, with the extension again, majority of our members may never be able to recover.
- Any possible recovery is further hindered by the lack of a clear path forward.
- These bi-weekly extensions do more harm than good.
- Businesses need to plan ahead
- to make vital decisions
- to retain or release staff
- to manage cash flow, gearing etc.
There is a serious lack of confidence in the business community.
The industry requires assistance from the government in moratorium on financial commitments, wage subsidies and more. These issues are yet to be addressed in this MCO.
- The main issue to be addressed is a structured recovery plan
- with an emphasis on stricter compliance with SOPs
- through education, community engagement and encouragement.
- We urge the government to work with us to come up with an
- immediate emergency plan to keep Businesses going,
- a 6 to 12 month stabilisation plan and thereafter
- a 3 year recovery plan.
- We strongly urge the government to lift the MCO.
- People may be saved from the virus but die of poverty.
Signed,
Dato' David Gurupatham and Datuk Irwin SW Cheong
On-behalf of INDUSTRIES UNITE
Industries Unite is a coalition of more than 40 trade, business and professional associations throughout Malaysia,
Industries Unite MCO2.0 –
List of Participating Bodies (in alphabetical order):
1. Akademi Usahawan Mikro (AUM), Azharee Abdul Wahid
2. Asian Oceania Computing Industry Association (ASOCIO), David Wong Nan Fay
3. Association of Malaysian Spas (AMSPA), Datin Jeanette Tambakau
4. Branding Association of Malaysia (BAM), Datuk Eric Chong & Dato’ Lewre Lew
5. Bumiputera Retailers Organisation (BRO), Datuk Wira Ameer Ali
6. Center of Strategic Human Resources, Azizan Amir
7. Contact Center Association Malaysia (CCAM), Raymond Devadass
8. Council of Asian Fashion Designers Malaysia, Bon Zainal Harun
9. Hospitality Asia (HAPA), Jennifer Ong
10. Malaysia Digital Chamber of Commerce (MDCC), Chris Daniel Wong
11. Malaysia Hair Association (MHA), Datin Winnie Loo
12. Malaysia Association of Certified Coaches (MACC), Michael Heah
13. Malaysia Association of Convention & Exhibition Organisers & Suppliers
(MACEOS), Francis Teo
14. Malaysia Association of Professional Trainers & Coaches (MAPTaC), Sunil
Hasmukharay
15. Malaysia Association of Professional Speakers (MAPS), Bavani Periasamy
16. Malaysia Association of Therapist Industry Development (MATID), Dr Baskaran Kosthi
17. Malaysia Bumiputra Designer Association (MBDA), Rasta Rashid
18. Malaysia Food and Beverage Executives Association, Muhammad Hisham Tan Abdullah
19. Malaysia Retail Chain Association (MRCA), Shirley Tay & Stan Singh
20. Malaysian Aesthetic Health Entrepreneur Association, Christine Loo
21. Malaysian Associated Indian Chambers of Commerce & Industry (MAICCI), Datuk AT Kumarajah
22. Malaysian Association of Wellness And Spa (MAWSPA), Datin Dorothea Justin Moduying
23. Malaysian Association of Travel and Tourism Agents (MATTA), Datuk Tan Kok Liang
24. Malaysian Bumiputera Training Providers Association (MBTA), Azman Shah Dato’ Aziz
25. Outsourcing Malaysia (OM), Mr Cheah Kok Hoong
26. Persatuan Industri Komputer dan Multimedia Malaysia (PIKOM), Danny Lee
27. Persatuan Penggiat Festival Antarabangsa (ALIFE), Rizal Kamal
28. Persatuan Pemilik Restaurant & Bistro Restaurant & Bistro Owner Association (PPRB), William Yilo
29. Persatuan Pengusaha & Tenaga Pengajar Sekolah Latihan Pengendali Makanan Malaysia, Zainuddin Kadir
30. Persatuan Niagakawi, Dato’ Alexander L.
31. Persatuan Usahawan Maju Malaysia (PUMM), Dato’ Tony Looi & Tan Lay Seong
32. Professional Culinaire Association of Malaysia, Chef Bob Kamarrudin
33. SME Association of Malaysia (SME Malaysia), Datuk Michael Kang
34. Trainers Excel Network (TEN Malaysia), Andrew Richards
35. Wedding Professionals Association of Malaysia, Patrick Low
36. Yayasan Usahawan Malaysia, Nitesh Malani
37. Film Directors Association Malaysia (FDAM), Dato’ Kamil Othman
a. Which comprises of FDAM, CGM, Profima, Postam, Seniman, MySC
Legal Advisor : Dato’ David Gurupatham (david@dgklegal.com )
Group Coordinator : Datuk Irwin SW Cheong (datukirwin@gmail.com)
My comments:
The first thing the Government should note is that they do not want any more MCO extensions. That is their request number 1.
And they have made important suggestions. The first one that I consider vital is :
- The main issue to be addressed is a structured recovery plan
- with an emphasis on stricter compliance with SOPs
- through education, community engagement and encouragement.
The virus is spreading because the people are NOT taking enough precautions to prevent the virus from spreading. At the major supermarkets they have placed hand sanitisers beside the shopping trolleys with a clear sign that says 'Sila gunakan hand sanitiser sebelum ambil trolley' etc etc. But hardly anyone applies the free-of-charge hand sanitiser before taking the trolleys.
We need really stricter compliance with the SOPs.
WE DO NOT NEED TO ARREST PEOPLE AND SEND THEM TO THE JAILS AND THE LOCK UPS.
As the letter above suggests:
- through education, community engagement and encouragement.
Who is the Minister of Information? Minister of Home Affairs? May I suggest that every Ministry (Foreign Affairs, Home Affairs, Womens Affairs, Finance Ministry, Tourism Ministry, Health Ministry, Education Ministry, Defence, Agriculture) come up with their own reminders, circulars, programs, infotainments, videos, whatever to engage with, educate and disseminate information about all the SOPS that should be relevant for whatever sector of the economy is under their care.
We really have to double the effort to make sure the people improve their hygiene and social distancing skills.
This Covid 19 pandemic is a disaster on the human race. We never expected this pandemic to afflict us so badly. All the countries in the world are still figuring out how to handle the situation. In Singapore they changed the rules - there is no need to wear masks. In Malaysia we wear masks (which I strongly agree with).
My point is arresting people and sending them to jail for breach of SOP is not the way to treat our people. It is better to educate and monitor.
The second point I would like to highlight is :
- We urge the government to work with us to come up with an
- immediate emergency plan to keep Businesses going,
- a 6 to 12 month stabilisation plan and thereafter
- a 3 year recovery plan.
I hope the Government listens to this. No one knows better what are their problems and how best to help the situation than the business people. So please ask them. Engage with them first.
The Government should just listen to the private sector about an immediate course of action, a medium term course of action (6-12 months stabilisation) and a long term course of action (3 year recovery plan).
Under the first MCO Ismail Sabri allowed the chicken farms to produce chicken eggs but the factory that manufactures the egg trays were prevented from operating. Without the egg trays how are the chicken farms going to transport the eggs? So the Government does not understand business.
Talk to the real business people. Talk to the real private sector players. GLCs and government agencies are not the real private sector ok so there is not much point talking to them.
The business people have asked for :
assistance from the government in moratorium on financial commitments,
The economy has already suffered one year of severe losses. And now we cannot say for certain when we will be able to get out of this pandemic.
A further moratorium on loan repayments will certainly save large sectors of the economy especially the SME sector. Otherwise more businesses will close this year.
The roll out of the vaccines are still pending. At first it was mentioned that it will be March. Then it went up to May. The latest I read is February 28th. The vaccine must be speeded up.
I strongly suggest that we communicate with India. They are the world's largest manufacturer of ALL TYPES OF VACCINES IN THE WORLD. India manufactures vaccines for Western pharmacy companies. Now India is the world's largest manufacturer of high quality Covid 19 vaccines at the cheapest cost - US$6 per dosage. We should be talking to India for the supply of the Covid19 vaccines.
But India may require that Malaysia hand over an Indian fugitive who is hiding in Malaysia. So which is more important?
For my final point I want to repeat the following in black and white:
I fear that the Government's tax collection for this year 2021 is going to be severely reduced because so many businesses have closed down and the economy is operating at far below its capacity. Hence Budget 2022 (due in October this year) is going to face serious funding issues. The Government better begin planning for this worse case scenario. Rather than calling on EPF for money (which belongs to the workers) it would be far better to assist the economy to heal and grow by itself.
With so many businesses shutting down and the rest operating at far below capacity where is the Government's tax revenue going to come from for this year 2021 and also NEXT year 2022?
Tengku Zafrul's earlier suggestion that the Government can tap on EPF's RM1 Trillion funds is immature and reckless.
We really have to help the private sector heal and recuperate.
Please remember the Malaysian GDP of RM1.44 Trillion is over FOUR times the Government's Budget allocation of RM332 Billion, which is derived entirely from the same economy.
The Government will NOT be able to use its Budget of RM322 Billion to boost an economy that is 4 1/2 times bigger than that.
You might think that I am being stupid but this is the thinking in some government circles. That it will be enough for the government to use Budget funds to boost the "GLC economy" and the "government agencies" economy. That is very shortsighted thinking.
The goose that lays RM322 Billion worth of golden eggs is the RM1.44 Trillion Malaysian economy. The entire economy.
If you want RM322 Billion worth of golden eggs then save the goose first.
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