THE third movement-control order (MCO 3.0) must be accompanied with measures to help the restaurant industry survive, since dine-ins are banned, a group from the sector said.

The Restaurant and Bistro Owners Association (PPRB) said these measures should include:

– A targeted moratorium to affected businesses, business owners and employees;

– Defer the collection of sales and service tax (SST), all statutory payments, licences payments and taxes for six months.

– Provide cash aid of a maximum RM 4,000 per business, per day, to assist in covering basic overheads, such as rent and wages. 

“These measures must be taken before more businesses perish and more jobs (are lost),” said PPRB in a statement today following the government’s announcement of the nationwide MCO 3.0, which comes into effect tomorrow until June 7.

Under MCO regulations, dine-ins in eateries are banned and only takeaways and deliveries are allowed. But PPRB said these measures are only an additional revenue stream for eateries.

“Relying purely on this stream to make ends meet is not realistic nor is it viable. 

“From our engagement with operators in the Klang Valley, Penang and Johor, many felt they will not be successful with this transition (takeaways and deliveries) as their investment and overheads are too high. In fact, many have tried to pivot in MCO 1.0 and 2.0 but to no success.”

PPRB added that it is now 14 months into the Covid-19 pandemic and landlords who had earlier given rebates to restaurant and bistro operators on their rentals are no longer doing so.

It said there were reports where many employees are on the verge of being evicted or having their vehicles repossessed.

“For the F&B sector, this MCO may be the final straw. Many of our members are still recovering from the impact of MCO 1.0 and MCO 2.0.

“The only way for the business to stay afloat is to reduce costs – it will mean job cuts and termination of leasing agreements, which in itself has a domino effect on the country.

“The impact will be felt by many levels of our supply chain and their families, who will all see their livelihood affected by this ruling.” – May 11, 2021.