KUALA LUMPUR (July 12): Trade groups from Netherlands, Germany and Japan are seeking clearer communication from Malaysia’s federal and state governments on the SOPs implemented in EMCO areas, which include Selangor and the Senai Industrial Park in Johor, where their members operate.
In letters to state and federal leaders sighted by The Edge, the trade groups have warned about businesses rethinking their investment decisions here, and called for a targeted approach that takes into account the success of some employers in keeping the virus at bay while in operations.
The groups also called for faster vaccination rollout, including to allow private initiatives, for a faster reopening of economic activities in the affected areas.
In a letter dated July 8 to Prime Minister Tan Sri Muhyiddin Yassin, The Malaysian-German Chamber of Commerce and Industry urged the government to provide clear communication on the enforcement of the SOPs for businesses, and to coordinate a targeted approach to allow companies to protect their investments, keep their staff and plan ahead.
“Most importantly, consistent and clear communication is necessary, so that enforcement, publication of SOPs and recovery plans are well-aligned.
“We suggest executing stricter controls at manufacturing facilities and related dormitories rather than closing down all facilities and harming the entire economy,” the letter read.
The chamber also pointed out that “if companies in certain sectors are allowed to operate, all related industries have to operate as well”. Otherwise, the supply chain will still collapse, it said.
Among others, it pointed to incidents such as with member company Weidmuller (M) Sdn Bhd which have no Covid-19 incidents but are still forced to close due to being located in Senai I-Park. It also cited “problems in the collective accommodation of foreign workers”.
“The company just set up its production in Malaysia last year and supplies worldwide.
“The company will have to relocate parts of the production to Spain if they cannot meet their clients’ demands. A relocation will lead to job losses in Malaysia and potentially the closure of the plant.
“Weidmuller hopes for a more targeted approach which does not punish the complete industry,” the letter read.
Other suggestions made include increased controls at manufacturing facilities and related dormitories, open private vaccination programme, and to re-open immigration services.
In another letter dated July 10 to the Johor Menteri Besar Datuk Hasni Mohammad, the Malaysian Dutch Business Council appealed for the state to permit uninterrupted operations for compliant companies.
“We are appealing to the state government to review available data from the Johor health department to identify companies that were audited previously.
“Companies that are in compliance should be allowed to operate as they have comprehensive safety protocols in place since the start of the pandemic in March 2020,” it said.
It added that business opportunities are often lost to branch companies and competitors in the region due to the lockdown disruptions.
“Any further closures from the EMCO areas mentioned above will result in the HQ of these established companies to re-think current and future investments in Johor,” the letter added.
“We call on you to help stop the flight of those investors that have trusted Johor with their investments. We urge you to be precise and targeted in action, using data not as a sentiment but as a guide,” it said.
Earlier on July 6, a joint letter from The Japanese Chambers of Trade and Industry Malaysia, and Japan External Trade Organisation to the prime minister pointed to Selangor, where over 650 or approximately 40% of 1,500 Japanese companies in Malaysia are based.
Among others, the letter called for permission for 10% warm idle operation in Selangor for all industries, as done “during MCO 1.0”; permission for full operations among automotive and steel players in Phase 1; permission to fully operate for all manufacturing-related services from Phase 2 of the National Recovery Plan (NRP); and faster vaccination rollout in Selangor.
Several districts and localities in Selangor, Kuala Lumpur and Johor were placed under the EMCO this month.
Daily Covid-19 cases have risen to above 9,000 since Saturday, and health director-general Datuk Seri Dr Noor Hisham Abdullah said it may take another two weeks before the surge will subside. Several states, however, have entered phase two of the NRP with cases there dropping to below 4,000 a day.
