Malaysia's business groups fear full lockdown will be devastating

Kuala Lumpur

BUSINESS groups and associations in Malaysia say that having strict standard operating procedures (SOPs) and ramping up the vaccination programme should be the top priority to curb the spread of Covid-19, rather than implementing a full-blown nationwide lockdown.

Tan Cheng Kiat, the president of the Malaysian International Chamber of Commerce & Industry, said the reality is that Covid-19 and its mutating variants are already present in the community and will remain so for a long time.

"The country cannot continue to forever be drumming up SOPs and shoot from the hip new regulations week after week. Uncertainty kills businesses," he said.

Mr Tan said the experiences and lessons from last year's first movement control order (MCO) showed that while the curve did flatten, the devastation to the economy was "almost irreversible".

"Unclear and ambiguous SOPs and arbitrary enforcement have taken a toll. Businesses do not have an on-off switch. Lack of consultation with the industry is the bane of all businesses. Cash handouts while they are not allowed to operate is unsustainable as there are no revenue streams from economic activities," he added.

A survey conducted by the SME Association of Malaysia on the impact of MCO3.0 found that nine in 10 small and medium-sized enterprises expect revenues to be affected by the lockdown, with nearly 40 per cent expecting to see a drop of over 50 per cent.

Selangor, the richest state in Malaysia, was the first to return to the MCO on May 6. The entire country then followed suit from May 12, with the current MCO3.0 restrictions in place until June 7.

"Should the same measures enacted during MCO1.0 be exacted for MCO3.0, more than 40 per cent of SMEs will be in dire financial straits and two million jobs will be lost," said SME Association of Malaysia president Michael Kang.

The call for the government to avoid a full lockdown came after the spike in infections in Selangor, prompting speculation of a complete lockdown of the state in the format of MCO1.0, which had strict restrictions on business activities.

The government is expected to deliberate a stricter lockdown under the current MCO at a National Security Council (NSC) meeting on Friday, with Prime Minister Muhyiddin Yassin and state chief ministers expected to attend.

This follows a new record of 6,806 infections across the country on Thursday, taking the total cases to date to 492,302. There were 59 fatalities, with the death toll to 2,099.

Earlier this month, the government announced a list of high-risk locations that can be seen from the Hotspots Identification for Dynamic Engagement (HIDE) system.

The list included many popular shopping malls, which were ordered to close for three days by the NSC. This despite the assurance from Minister of Science, Technology and Information Khairy Jamaluddin that it was merely a guide and that no closure was necessary.

The HIDE system came under fire by retailers and shopping associations for being incomplete and skewed to portray a different picture from the actual situation on the ground.

"The methodology behind the HIDE system remains opaque, and there has been much confusion caused by the recent spate of media coverage on federal versus state government procurement of vaccines," said Siobhan Das, CEO of the American Malaysian Chamber of Commerce.

"These examples erode both public and business confidence in Malaysia in handling the pandemic. Additional steps must be taken to showcase the country's ability to manage its economy and the safety of its people through the iterations of Covid-19, while firmly maintaining its position in the global supply chains."