Image credit: Tawau Travel Guide
TAWAU: Tawau Chinese Chamber of Commerce (TCCC) President, Chia Seong Fatt (pic), likened the overall situation of different industries in Tawau to being in “winter” and which will take some time to recover.
Chia said the production and supply chain, even the market expenditure were not optimistic because consumer behaviour has changed. People are spending less while all sectors were experiencing a drop in sales during movement control order (MCO) period.
The MCO has affected the operations of almost all industries resulting in economic shock, except food processing or essential food production which could operate but not 100 per cent.
They might achieve about 50 per cent of production with high cost while also encountering certain limitations.
He said many sectors were very miserable throughout the MCO time. Although the government has allocated fund for the small and medium enterprises (SMEs) but in the overall of business concept, it was only 10 per cent relief from the production.
“Many SMEs are encountering turnover difficulties although their SME loan application was approved but the fund is not available.
“The construction sector also cannot resume operations although the government allows them to do so since June 10 because the employees are forced to undergo health screening test before they return to work. This will increase the company’s spending by about RM300 for each employee to go for screening apart from delaying their operations.
“Until now, almost all government projects cannot be resumed while some that involve Chinese contractors and technicians also could not resume as their technicians and contractors are still unable to fly back to Malaysia although their machinery are well prepared and available,” Chia further explained.
According to him, MCO has changed everyone into a new norm of life and consumer spending behaviour. Many people have been spending more time at home and avoid hanging out in malls or dining out.
The social form and consumption pattern also have changed where many families with elderly members or children prefer to eat at home.
Market demand and price of frozen seafood such as prawns, lobsters, fishes and crabs also have dropped by almost half the usual price.
The tourism sector in Sabah also is in “winter” mode where its income is practically zero. Many tourism operators have to sack their employees or to allow them to go on leave.
To this, Chia hoped the government would enhance the Economic Stimulus Package by allocating more funds and activating more government projects in order to stimulate the market so as to speed up economic recovery.
Source: http://www.dailyexpress.com.my/news/155730/many-tawau-business-sectors-hit-by-mco/