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Wednesday, December 15, 2021

Reconsider RM1mil fine proposal over SOP compliance, say business groups

The present maximum penalty that can be imposed on businesses not complying with SOPs is RM50,000. (Bernama pic)

PETALING JAYA: Business groups have called on the health ministry to reconsider the proposed maximum compound of RM1 million for businesses or agencies not complying with Covid-19 SOPs.

The maximum amount that can currently be imposed is RM50,000, and the hefty increase is among the amendments to the Prevention and Control of Infectious Diseases Act 1998 (Act 342) to be tabled in the Dewan Rakyat on Thursday.

“At a time when businesses, especially SMEs, are trying to recover from the prolonged lockdowns, the proposed maximum penalty is excessive,” said Small and Medium Enterprises Association (Samenta) chairman William Ng.

“A fine of up to RM50,000 is already excessive, so taking this up to RM1 million is beyond punitive.”

William Ng.

Ng said that businesses were aware of the need for compliance and were, by and large, observing this. He said that according to a survey Samenta conducted in September, SMEs were spending an average of RM90 a month on SOP compliance for each employee.

“However, lapses do happen, and sometimes these are beyond the control of the business owners,” he said.

Sri Ganesh Michiel, deputy secretary-general of the Federation of Malaysian Business Associations (FMBA), said that piling businesses with more pressure might dampen investment.

Calling for a thorough study on the amendment’s effect on businesses, companies and factories, Ganesh said enforcement agencies which act against those flouting SOPs should be held liable if it was found that they had acted wrongly.

Sri Ganesh Michiel.

Crucially, he said, the amendments should include a mediation agency or an independent department to verify reports of flouted SOPs before the compounds were meted out.

“Every party should be held responsible for making sure these new amendments are successful and not misused,” he said.

A health policy expert also weighed in on the matter, stating that proposals such as a RM1 million fine for non-compliance of SOPs must be evidence-based.

“Is there any evidence or study to support (the view) that imposing extraordinary punitive penalties and fines will actually result in an improvement in the level of compliance and adherence to SOPs, leading to a decrease in the number of (Covid-19) cases?” asked Azrul Mohd Khalib, who heads the Galen Centre for Health and Social Policy.

“Harsher laws have not been proven to produce better outcomes in a public health emergency.”

While he said it was tempting to use instruments of the state such as fines or imprisonment, or both, to enforce measures such as quarantines or compliance with SOPs, Azrul stressed that harsh legislation during public health emergencies often undermined public health by creating barriers to prevention, testing, care and treatment.

“They end up doing more harm than good,” he said.

Azrul Mohd Khalib.

He said that increasing penalties so drastically would have the unintended consequence of disproportionately punishing the most vulnerable in society, especially those living in hardship, people of lower-income and marginalised individuals.

He also asked whether the main stakeholders likely to be affected by such a significant change in policy, such as business owners, healthcare providers and civil society organisations, had been consulted before the proposal’s announcement by health minister Khairy Jamaluddin on Sunday.

Appearing on an RTM programme, Khairy said that amendments to the Prevention and Control of Infectious Diseases Act would also involve issues such as the installation of surveillance devices.

Bernama quoted him as saying the amendments would also allow enforcement to be carried out by local authorities as opposed to only health ministry officials.- FMT

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