PUTRAJAYA should allow more retailers to reopen and end the economic standstill triggered by Covid-19, said the Malaysia Retail Chain Association (MRCA).

The retail sector needs at least a year to get back on track, and prolonged closure will not only harm retailers but manufacturers as well, its president, Garry Chua, told The Malaysian Insight.

“We need half a year to stabilise and another six months to get back to normal,” he said, urging the government to loosen movement-control order (MCO) restrictions and allow some retail businesses to resume operations.

Manufacturers’ machinery will be damaged if left idle for a long time, incurring repair costs, he said.

Retailers are also facing financial pressure as they still need to pay expenses despite a lack of income and uncertainty remains as to when business can continue.

“The financial pressure they now face is paying workers’ salaries, rent and the various statutory payments.”

Illustrating his point, Chua said chain stores in well-known shopping malls have overheads of between RM20,000 and RM50,000 a month.

The current situation is “worse than a recession” because the economy as a whole has come to a grinding halt, he said.

Even though some retailers have taken their businesses online to ride out the storm, he said, it is still hard for them to survive.

“Going online has halved the damage (for some retailers).

“Unlike a recession, where some export industries can survive, now everything has stopped. It’s a standstill.”

Under the MCO, only essential services, such as supermarkets, mini-marts and eateries, are allowed to operate and that, too, with restricted hours – from 8am to 8pm in the peninsula, and 7am to 7pm in Sarawak.

Chua suggested that retailers be allowed to reopen as long as they adhere to health and safety measures, including social distancing, good hygiene and temperature checks.

These are already part of the standard operating procedures for the sectors allowed to operate during the MCO, he said.

The government directive to break the chain of coronavirus infections came into force on March 18. Phase III of the MCO is set to end on Tuesday.

As of yesterday, Covid-19 has infected 5,532 people and killed 93 in Malaysia.

“We have requested the government to allow us to open early, with these SOPs in place. So far, we have not yet received a response,” said Chua.

For a start, Putrajaya should allow chain restaurants to accept dine-in patrons so long as social distancing is observed by limiting the number of customers on the premises, as well as requiring both employees and diners to wear masks, he said.

“If they don’t comply, then shut them down.”

MRCA has suggested that the government’s wage-subsidy programme under its Covid-19 economic stimulus package be expanded to 500 workers from 200.

Most retail chains have more than 500 employees, while the bigger ones have up to 2,000. Expanding the subsidy will help those with about 1,000 employees cope with the wage bill for at least half their workers.

Chua praised Selangor’s decision to allow some businesses to open at least two days a week, saying this will allow retailers to generate revenue to meet their monthly expenses.

The Malaysian Retailers’ Association recently proposed a government declaration of the pandemic as a “force majeure”, a legal clause on unforeseeable circumstances that prevent the fulfilment of a contract.

It also mooted legislation to grant businesses temporary relief if they are unable to fulfil contractual obligations.

The government has to keep everyone working to prevent massive unemployment, said Senheng Electric (KL) Sdn Bhd managing director Lim Kim Heng.

Though his company has been able to survive through online sales, he fears this will be affected if unemployment worsens.

With businesses unable to operate during the MCO and staring at likely closure, the resulting unemployment will impact even online retailers, he said.

“If the unemployment rate goes up, sales will take a hit.

“But if the government can help and keep everyone working, then all of us can improve.” – April 23, 2020.