Confusion over border reopening will hit business, govt told

 

A business group says ‘unclear messaging’ has been the bane of the business community from ‘day one of the MCO’. (Bernama pic)

PETALING JAYA: Confusing statements on the reopening of Malaysia’s borders may affect industry players and investor confidence, says a business group.

On Tuesday, National Recovery Council (NRC) chairman Muhyiddin Yassin suggested that the borders ought to be reopened by March 1 without mandatory quarantine.

However, quartet ministerial chief Hishammuddin Hussein said they will only be reopened after discussions with the health, and tourism, arts and culture ministries as well as the immigration department.

Malaysian International Chamber of Commerce and Industry (MICCI) executive director Shaun Cheah believed that both statements did not actually contradict each other, but Muhyiddin may have “jumped the gun and Hishammuddin had to correct and elaborate the proposal further”.

Shaun Cheah.

Cheah said confusing and unclear policies would affect business operations and possibly drive prospective investors to neighbouring countries.

However, he said, businesses were more careful now, citing their experience of carrying out operations under confusing Covid-19 SOPs.

“Confusion like this or unclear messaging has been the bane of the business community since day one of the movement control order (MCO).

“After years of these uncertain SOPs, businesses have by now adapted and not jumped to any conclusions until it comes out of the horse’s mouth,” he told FMT.

Carmelo Ferlito, chief executive of the Center for Market Education, welcomed the NRC’s proposal but criticised the lack of communication between ministries and government agencies.

Carmelo Ferlito.

“Obviously, contradictory signals are confusing for the business community. After the NRC’s suggestion, many could have started thinking on how to get ready for the reopening.

“However, a message in the opposite direction comes to frustrate those expectations and, therefore, delaying investment decisions and chances of a sounder and more stable recovery path.

“We need to think in terms of missed profit opportunities. As long as the scenario remains unclear, investment decisions will be postponed. The same goes for both domestic and foreign investments.” he told FMT.

Meanwhile, the SME Association of Malaysia hoped the borders would reopen by March 1, as proposed by the NRC.

“SMEs are mainly in the service sector and we work closely with the tourism industry, one of the most affected industries,” SME Association of Malaysia vice-president Chin Chee Seong said. - FMT