Work Together to Chart a Path Towards Recovery

The government has been urged to engage with and work together to chart a path towards recovery, as many sectors are in need of assistance, said Industries Unite, a grouping of more than 110 representatives from various industries. MRCA is one of the members of Industries Unite.

ur members look “O forward to a meeting with the Prime Minister soonest to raise these and many other issues and look to have purposeful dialogue with the relevant ministries,” the group said in a statement recently.

While Industries Unite agreed that the safety, health and wellbeing of the people was paramount and lauded efforts to curb the spread of COVID-19 pandemic, it added that “we regret that there is no clarity on the government’s plan for the economic wellbeing of the business community during this period”.

The group also welcomed the rigorous testing and targeted enhanced movement control order in certain areas with high case numbers, but other areas where the risk is low must be allowed to re-open, it said.

“Businesses that (must) comply with mandatory testing face an added burden on their cash flow. We ask that they be provided with resources and funds to be in compliance,” added the group.

Industries Unite also listed several requests to the government such as a six-month moratorium on loans and financial obligations as well as increased support for worker wage subsidies, among others.

When MCO 2.0 was imposed, the Industries Unite MCO 2.0 urged the government to let them have a say before standard operating procedures (SOPs) for businesses are drawn up. In a virtual media conference on January 30, Industries Unite MCO 2.0 group coordinator Datuk Irwin Cheong said the group came to a general consensus that they want engagement with the authorities.

They said that the government’s instructions with regard to midstream and downstream businesses were not clear.

The retail industry leaders had a conference meeting in February this year with the Ministry of International Trade & Industry (MITI), KPDNHEP, Polis Diraja Malaysia and Kementrian Kesihatan Malaysia (KKM) senior officers on the clarity of enforcement of SOPs.

MRCA President Shirley Tay told The Star said after the first MCO last March, at least 70% still had jobs to return to. “During the recovery MCO, 50% to 60% businesses managed to return. However, in the second MCO this time, business dropped a great deal.

Shirley Tay Tan Sri Teo Chiang Kok. Datuk Wira Ameer Ali Mydin. Datuk Irwin Cheong.

MRCA JOINS INDUSTRIES UNITE, A BROAD COALITION REPRESENTING THEIR INTERESTS

The coalition, comprising trade, business and professional associations under the banner of Industries Unit, advocates for a continuous effort among the government authorities in aiding to cope with COVID-19 recovery and stabilisation plan.

Industries Unite recently launched a public service initiative with hopes of bringing down the country’s current COVID-19 infection rate. The public service initiative features a series of advertisements displayed on electronic billboards along major roads in the Klang Valley.

The digital advertisements are of messages such as “Kita Teguh, Kita Menang”, “PATUHILAH SOP”, “Mencegah COVID-19 bersama-sama” and a Chinese New Year greeting.

MRCA called on its members to support the current campaign by Industries Unite by displaying the poster at the front of their business premises. Those who have displayed the poster at their business premises, are requested to send photos of the display to MRCA for record purposes.

“What we want is for the government to engage us prior to the SOP is released. For example, optical businesses were not allowed to open initially but after complaints, they were allowed to,” she told the daily.

She added that some shops, which had permission to operate during the MCO, were told to close. “We retailers have at least 200,000 jobs. Please engage us before deciding on the SOP,” said Shirley Tay.

Shirley Tay and Tan Sri Teo Chiang Kok, President of the Malaysia Shopping Malls Association and a member of Industries Unite, both voiced their concern over the hefty fines of RM10,000 for individuals and RM50,000 for businesses who purportedly violate the movement control order.

“The government must come out and give us confidence and a reason to buy in to what they need us to comply with and not use a big stick which creates undue fear and panic for no positive advantage,” said Tan Sri Teo.

He added that businesses were now in the “intensive care unit” (ICU) and were running losses, and even if they were allowed to operate, their capacity was 40% of usual operations because of the SOPs.

The group also requested that the government assist business owners (especially the small and micro businesses) on possible subsidies, zero or no interest loans and moratorium on existing financial commitments for at least six months from banks and financial institutions.

“We need to keep businesses and supply chains going. The recent shortage of bread is a good example of how this situation can turn chronic if we don’t pay attention to businesses and the supply chain. It’s a total ecosystem,” said the group.

Meanwhile, Datuk Wira Ameer Ali Mydin, President of Bumiputera Retailers Organisation which is also a member of Industries Unite and Industries Unite MCO 2.0 was quoted in The Malaysian Reserve recently that retail businesses had dropped about 90% during the first week of MCO 2.0 compared to before it came into force on Jan 13.

“Although shopping complexes are allowed to open, the retail sector is taking a drastic hit. People are not coming out to shop despite strict standard operating procedures (SOPs) in place.”

Datuk Wira Ameer Ali, who is also the Managing Director of Mydin Mohamed Holdings Bhd, told the newspaper that the drop in sales is also attributed to the suspension of the apparel segment. He added that in general, 70% of tenants at shopping complexes are usually made up of the apparel segment, while the remaining 30% are taken up by the food segment.

“The initial MCO in March 2020 did not go down as bad as this one,” he said.

He added that during the Conditional MCO (CMCO) period, retail business recovered and rebounded by 50% to 60%.

In comparison, Ameer Ali said MCO 2.0’s impact on the retail sector has exceeded that of last year’s MCO. “Business dropped by 90% within the first week of MCO 2.0, partly because the apparel segment was ordered to be closed.”

He told the newspaper that during the CMCO period, retail business recovered and rebounded by 50% to 60%.