PUTRAJAYA’S decision to allow clothing stores to reopen from yesterday is a little too late for industry players sitting on about RM1 billion worth of stock they need to clear just two days before Chinese New Year, which begins tomorrow.

Federation of Malaysian Fashion, Textile and Apparels chairman Tan Thian Poh said the sector actually received the green light from the International Trade and Industry and the Domestic Trade and Consumer Affairs Ministries to reopen on February 5 but bureaucracy resulted in the announcement being made on February 9.

“Retailers will now have to sell at massive discounts in order to offload their stock and limit their losses.

“We considered opening on the first day of Chinese New Year (on Friday), but the overhead for this is high. We can only sell as much as we can in the two days,” Tan told The Malaysian Insight.

Each day of the second movement-control order (MCO), imposed from January 13 to February 18, has so far cost the clothing retail sector about RM150 million, Tan said.

“The government does not seem to understand how retailers and the clothing sector operate. They think we can just shift our sales online but this is not always feasible (for some) due to consumer habits.

“Retailers who already have online platforms only manage to sell about 2% to 3% of their stock. What are they to do with 95% of their remaining stock?” asked Tan, who is also Malaysia Textile Manufacturers’ Association president.

Industry players bought about RM1 billion worth of stock in anticipation of the Chinese New Year. Some items include ox-themed clothes but Tan said even those not celebrating also usually take the opportunity to buy new clothes.

Some of the stuff that must sold at steep discounts includes those with the ox motif, while others can still be sold in March and April.

Closure of clothing stores under the MCO also impacted on other parties in the clothing industry, such as packaging, Tan said.

Related sectors also lost around RM150 million a day because of continuing costs and overheads even while stores were closed.

“In all, we have been prohibited from opening for about a month. Assuming that wages in the sector account for RM50 million, and rent another RM50 million, the sector has already lost RM3.1 billion.”

Tan said the clothing sector is a big component in the economy as it employs about 500,000 workers, and sold about RM55 billion worth of products a year.

“If the sector collapses, it is not just retail, but related sectors along the supply and distribution chain will also be affected.”

Tan also questioned the government’s decision under MCO 2.0 to close clothing shops but allow jewellery shops, toy stores and retailers of other types of goods to operate.

Now that clothing shops can open, they have additional standard operating procedure (SOP) to follow, which includes providing customers with disposable gloves.

Customers, however, won’t be allowed to try on clothes.

Tan said the new requirement for disposal gloves will now see the country’s roughly 50,000 clothing retailers scrambling to procure them, and fears a supply shortage.

“We are willing to follow the SOP but we need two weeks to make the necessary arrangements,” he said.

Federation of Hawkers and Petty Traders’ Association president Yow Boon Chuan said small traders who sell new year clothes at pasar malam will suffer greatly.

They tend to buy themed clothes each year according to the animal zodiac.

Yow said some small traders have tried to sell ox-themed clothes online but the response was dismal.

“They will not be able to clear stock and will likely not recover from this loss,” he said.

These traders will be unable to repay debts and risk bankruptcy, he added.

Penang Petty Traders’ Association president Ooi Thean Huat said traders will sell as much as they can before the Lunar New Year tomorrow.

“These two days are critical for small traders as the clothes are no longer suitable for wear after Chinese New Year.

“They can now only open on February 10 and during the day time on February 11. After that, they will close for the festivities. Normally, they will open again on the third or fourth day of Chinese New Year, but by then the clothes can no longer be sold.”

Kuala Lumpur Hawkers’ and Mobile Traders’ Association president Lim Suai Chai said some small traders were driven to desperation during the MCO and secretly opened their stalls, with some getting caught by the authorities.

Lim also said with consumer budgets tightened because of the pandemic-stricken economy, people are buying mostly biscuits and snacks but not new clothes. – February 11, 2021.