Aztech Global says MCO to reduce Malaysia production for two weeks by 30%

Vivienne Tay

Published Thu, May 27, 2021 · 09:55 AM

AZTECH Global, the technology unit of Aztech Group, on Thursday said it estimates the latest movement control order (MCO) in Malaysia to reduce its production output in that market for two weeks by 30 per cent.

This came after the group's preliminary assessment on the impact of the stricter rules on its operations in Malaysia. Restrictions include requiring companies in the private sector to adhere to having 40 per cent of their workforce work from home from May 25 to June 7.

Aztech Global's Malaysia plant handles about 20 per cent of total output. Its China plant continues to account for the remaining 80 per cent. Thus, with measures already in place to mitigate effects from the Covid-19 pandemic, the group expects the latest MCO implementation in Malaysia to have minimal impact on its overall production output, it said.

Operations in Singapore, Hong Kong and Shenzhen are not affected by the latest Covid-19 situation, it added.

"The group will continue its close monitoring of Covid-19 development, it is working closely with its customers and suppliers to proactively manage production and delivery of customer orders to optimise utilisation of resources," Aztech Global noted.

Shares of mainboard-listed Aztech Global were trading at S$1.29 or 2.27 per cent lower when market closed on Thursday, after this announcement was made.