ELEVEN trade associations representing non-essential businesses have written to Prime Minister Muhyiddin Yassin that they be allowed to resume operations this month as the prolonged lockdown is costing them millions in losses.

The 11 groups want to resume operations with at least 50% workforce capacity.

“We are not applying pressure on the government, but we are desperate (to resume business). The government should understand that the situation on the ground is dire.

“Even if they allow 50% capacity, it will take us a while to get back to normal. We have lost out on so many business opportunities in the last two months,” Low Kian Chuan, president of the Associated Chinese Chambers of Commerce and Industry of Malaysia told The Malaysian Insight.

The current lockdown or movement-control order (MCO) was imposed on June 1 nationwide. The MCO is now known as phase one under the national recovery plan, which the government introduced last month.

Some states, which have met criteria involving the vaccination rate, lower daily Covid-19 numbers and intensive care unit (ICU) bed capacity at hospitals, have moved into phases two and three.

But the Klang Valley as well as Johor, which are the country’s major business and industrial hubs, still remain under phase one.

Under phase one, only essential sectors such as food and beverage, healthcare, water, energy, banking, ports and logistics and communications, can operate. Factories producing essential goods and supply chain items for essential sectors are also allowed to operate, but at 60% workforce capacity.

However, the list of what is deemed essential and non-essential has posed problems if they are not synchronised, especially when upstream and downstream producers along a supply chain are categorised differently.

Low, who is in the furniture business, cited this sector as an example, where upstream timber producers are allowed to operate, but downstream furniture makers are not.

“The timber sector contributes around RM2 billion a month in export and RM800 million a month domestically.

“The government has allowed the timber sector to operate but downstream industries such as the furniture sector, predominantly located in Johor, Kuala Lumpur and Selangor, can’t operate.”

He added that his factory, which operates in Terengganu, has had problems sourcing materials such as paint and glass due to the restrictions.

“A lot of these things are custom made, I can’t just go to the hardware store and pick them up.”

Low said the government’s target to have all states move to phase four in October, when all economic sectors can reopen, will be too late for many businesses.

“If we wait until October, there will be more people who have been vaccinated but most of our business would have closed down by then.

“It’s been two months since the lockdown and the cases are still high. They have to use a different benchmark. Look at the number of serious cases instead of the total number of Covid-19 infections,” Low said.

Prime Minister Muhyiddin Yassin told Parliament on July 26 that he expects all states to transition to phase four in October. Phase four is when Covid-19 cases are less than 500 daily, and 60% of the population is fully vaccinated.

Deputy Prime Minister Ismail Sabri Yaakob had also said he expects all states to move to phase two by the middle of this month, based on the country’s vaccination plan and the risk assessments carried out on each state.

Criteria to transition into phase two is fewer than 4,000 daily Covid-19 cases, 10% of the population fully vaccinated, and ICU bed usage at “moderate” use.

However, daily virus cases are still hitting around 17,000, and the healthcare system remains in a critical state with a shortage of beds, ambulances and oxygen supply.

Tan Thian Poh, president of the Federation of Malaysian Fashion, Textile and Apparel (FMFTA), said since eight states have moved into phase two, Putrajaya should allow the fashion and textile sector to reopen even though it is not an essential sector.

“Now that several states are already under phase two, we expect the government to allow our members in those states to operate, especially since our sector is not at high risk.”

Tan said the continued closure of the fashion industry is costing them RM163 million in losses a month.

Last year, the Malaysian fashion industry reported RM53.8 billion in revenue, with retailers accounting for RM29.6 billion of the total, and the manufacturers making RM24.2 billion.

“Throughout this lockdown the businesses are paying a heavy price but we are not getting any results. Our sacrifice is not rewarded or serves much purpose. In the last two months the cases are going up. This shows that the lockdown is not working and shouldn’t continue.”

Along with the Federation of Malaysian Manufacturers and FMFTA, other associations who have written to the prime minister are the Kuala Lumpur and Selangor Furniture Association, Malaysian Furniture Council, Malaysia Glass Association and Malaysia Retail Chain Association, among others.

The eight states in phase two of the national recovery plan are Perlis, Perak, Pahang, Kelantan, Terengganu, Penang, Sabah and Sarawak. From yesterday, however, Perlis, Sarawak and Labuan moved into phase three. – August 7, 2021.