KUALA LUMPUR (May 30): Proton Vendors Association (PVA) has urged the government to exempt automotive parts manufacturers from the total lockdown ruling, albeit subject to strict standard operating procedures (SOPs) in order to prevent the economic collapse of the industry.
In a statement today, PVA president Datuk Dr Wan Mohamed said while measures to contain the spread of Covid-19 is necessary, the magnitude and speed of collapse in economic activity as a result of a total lockdown will be very detrimental to the security and sovereignty of the country.
“This is a crisis like no other. It is hard to predict if a total lockdown would lead to stabilising the pandemic condition. What we do not want is multiple crises — from health to financial crisis.
“Given the extreme uncertainty of the Covid-19 crisis, if the pandemic does not recede after the proposed total lockdown period, it will lead to longer durations of containment and worsening financial conditions to the majority of the manufacturers/entrepreneurs and self-employed Malaysians,” he said.
The association said it supports the Federation of Malaysian Manufacturers’ (FMM) proposal and recommendations, and that policymakers and relevant authorities must ensure that entrepreneurs and those that are self-employed would be able to meet their needs and rebuild their businesses, following the lifting of the lockdown.
PVA urged the government to continue with the loan moratorium, enhanced benefits and other measures as detailed by FMM in the latter’s statement to the media.
It said the local vendors are scrambling to adjust to the new business conditions, amid the uncertainties brought about by the pandemic and the on-again, off-again lockdowns.
Besides, many vendors are also exporters of automotive parts to the overseas original equipment manufacturer (OEM) markets and therefore, severely affected by the pandemic, as well as the volatility in the ringgit.
“Lockdown is definitely not an option for both the domestic and overseas vendors who have the contracts to supply parts to the overseas OEMS. The stoppage in operation would lead to a default in the current and future supply contracts. Subsequently, legal claims would be served against them for failing to meet their contractual obligation.
“For these suppliers mentioned above, who are exporting parts to foreign OEMs in overseas markets, we would like to appeal for them to be allowed to operate under the strictest SOPs during the lockdown,” said the association.
Read also:
Allow import, export activities during lockdown — FMM
