Chaswood sees impact on results from Malaysia's movement control curbs

CATALIST-LISTED food-and-beverage operator Chaswood Resources on Thursday said that, with Malaysia's movement control order (MCO) in force in some parts of Selangor, its affected restaurant will be allowed to operate only take-away and delivery services.

The Malaysian government had announced the imposition of the MCO in six Selangor districts - Petaling, Hulu Langat, Gombak, Klang, Kuala Langat and Sepang - from May 6 to May 17, 2021 to curb the spread of Covid-19 in Malaysia, which has had a recent surge in positive cases.

Economic activities can continue under the MCO, but social activities are barred during the period.

To counter the impact from the situation, the group has undertaken measures including managing its manpower planning, negotiating with the landlord for a rental rebate, driving its delivery business via various platforms and promotional activities, and tapping the support measures by the government, such as the offer of wage subsidies.

Still, it warned that the limited operations may have a "material adverse impact" on the group's financial results in terms of earnings per share and net tangible asset value per share for FY21.

The group is currently undergoing a corporate restructuring exercise and operates restaurants under a home-grown brand, Italiannies in Malaysia.