A SECOND movement control order (MCO 2.0) will have severe impact on the food and beverage sector as most businesses have run out of the reserves that saw them through the first, said industry players.

Malaysian F&B Operators Alliance co-founder Joshua Liew told The Malaysian Insight that many had used up all their savings keeping their business afloat during the first lockdown enforced in March to May last year.

“We did well from July to October but then suffered a drop in business in November due to the conditional movement control order (CMCO)

“There was an increase in business in December for some of us as it was the festive season but 30% of the operators suffered heavy losses.

“And now every recovery plan we had for 2021 is thrown out of the window because of MCO 2.0,” Liew said.

Like the first stay-home order, the second one enforced today prohibits restaurants from serving dine-in customers.

Businesses that will profit from the rules are fast food outlets and convenience stores, he said.

He said restaurants catering to a middle- and upper-class clientele do badly at such a time.

Liew said a large number of restaurants closed down last year and he expected more to do the same this time around.

Malaysian Indian Restaurant Owners Association chairman Govindasamy Jayabalan said about 70% of the group’s members suffered high losses during the conditional MCO in November.

“I foresee more shutting down as during the MCO, they will only be able to operate at 30% capacity.

“I already have members asking me if they will be granted another moratorium this time.

“They are also asking if the government is able to help them with rent and electricity bills for six months,” Govindasamy said.

The group has about 2,000 members, most of whom are in the Klang Valley, Penang, Johor and Perak.

A restaurant owner who wished to be known as Ruben said he is afraid he may have to close down for good.

“I already laid off a couple of workers during the first MCO and now with a second round, it doesn’t look good at all,” he said.

Ruben said friends and family had helped him out financially the first time but he cannot expect them to keep coming to his aid.

“People come to my restaurant, especially on weekends, to have a drink and watch football. Without dine-ins , 90% of my customers are gone,” he said.

The movement control order (MCO) in its strictest, original form takes effect today until January 26 in Penang, Selangor, Malacca, Johor, Sabah, Kuala Lumpur, Putrajaya and Labuan.

Prime Minister Muhyiddin Yassin had said the measures are necessary as Covid-19 cases soar, putting the healthcare system under tremendous pressure. – January 13, 2021.