MORE than 85% of the goods-transport sector is in a state of suspension despite being deemed an essential service and allowed to operate during the movement-control order (MCO).

Industry players told The Malaysian Insight this is due to the knock-on effects of barring most economic activities.

“Once many areas (of business) were stopped, we – as part of the supply chain – were also affected,” said Pan-Malaysia Lorry Owners’ Association (PMLOA) president Ng Koong Sinn.

He estimates that only 10% to 15% of association members remain in operation, mainly to deliver necessities.

PMLOA represents 2,000 firms, which employ nearly 80,000 lorry drivers who earn their living from commissions for deliveries.

“Their fees are calculated by shift, so if there are no goods being transported, there is no income,” said Koong Sinn.

The monthly income of full-time lorry drivers typically range from RM4,000 to RM5,000, said Selangor and Kuala Lumpur Tracking Association secretary-general Ng Yoon Kin.

He said some drivers recently approached him to discuss issues related to their livelihood, adding that he as an employer has also found himself in a dilemma.

Announcing an additional RM10 billion as part of the Prihatin economic stimulus package yesterday, Prime Minister Muhyiddin Yassin said the government is aware that employers are finding it difficult to retain workers during this difficult period.

“Because of this, the government has agreed to allow discussions between employers and employees on the terms of employment, including the possibility of imposing a pay cut or allowing staff to go on no-pay leave.

“Both employers and employees can seek advice from the Manpower Department. What is important is that there must be a win-win situation for both parties.”

Yoon Kin said employers still have to rely on lorry drivers to deliver goods, and his association will try to help as much as possible. But, he noted that it is very challenging.

As most transport services have ceased, many companies are left without revenue, he said, adding that employers will have to negotiate with drivers on salary payment.

“The government should look closely at this issue, because there are not many people in our industry who receive a monthly salary, except for maybe a handful of administrative staff (in each firm).

“Drivers are regarded as daily wage earners based on their output.”

Koong Sinn urged Putrajaya to exempt the renewal of the transport road tax for three to six months, to reduce the burden on the industry.

The government must negotiate with insurance companies to waive insurance for lorries that have not been on the road for several months, said Yoon Kin, pointing out that since the vehicles are not in use, insurance firms do not bear any risk.

He said newer, larger lorries are priced about RM600,000 to RM700,000, with an annual insurance of between RM10,000 and RM20,000.

“We hope the Finance Ministry can talk to insurance companies and deduct some of the premiums for lorries that have not been on the road.”

Koong Sinn said at present, many transport firms are waiting for the International Trade and Industry Ministry (Miti) to approve the restoration of services in certain sectors before they can resume work.

“We also need an approval letter to be on the road, and the approval process is ongoing. Once the manufacturer is approved, they will hand us the letter.”

On March 28, Miti said 2,732 factories were approved to resume work during the MCO, accounting for 29.4% of the total applications.

It received 9,290 applications from factories in various essential sectors and supply-chain components to continue work during the restriction order, and 2,794 companies, or about 30%, were rejected.

The MCO is in place till April 14. – April 7, 2020.