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KOTA KINABALU: The president of Small and Medium Enterprises Association of Sabah (SME Sabah), Foo Ngee Kee has urged the government to review the revised hefty fine in the new Emergency (Prevention and Control of Infectious Diseases) (Amendment) Ordinance 2021 published on the Federal Gazette website.
This law which will take effect on March 11 provides for a maximum fine of RM10,000 for individuals and RM50,000 for companies for violating standard operating procedures (SOPs).
Foo said the 10 fold increase in fines for individuals to RM10,000 and a RM50,000 fine for companies is too harsh and beyond the people’s and SMEs’ means.
He said this would further stress SMEs and individuals who are still reeling from the negative impact of the pandemic.
“We understand the reason for fining offenders, but we see no reason to set such a hefty increase in fines.
“It only gives the impression that the welfare of the people and SMEs is not factored in while preparing the amendments,” he stressed.
Foo said during this very difficult economic times and prolonged effects of the pandemic on the world and local economies many livelihoods have been devastated.
“The manner and timing of the increase in the fines is not appropriate and ill-timed. It will cause more harm than good.”
Besides, he pointed out that Malaysia’s recent daily active cases have been declining, showing that the fine of RM1,000 is actually effective after the enforcement stepped up.
“SMEs that are still operating are making losses not profits.
“Soon they will have to face the challenge and risk of being penalised RM50,000 if caught for violating SOPs which change frequently and are too many to follow strictly.”
Nonetheless, Foo said a fine of RM50,000 is definitely too hefty for SMEs and unfair because non-compliance of SOPs can be due to many factors.
For example, if a company has many employees, it would be almost impossible to ensure that each and every employee would not be negligent, albeit unintentionally, and would not forget to comply with SOPs.
For any such lapse by any employee(s), the employer is fined heftily.
“This risk is big, unmanageable and real. It adds to the losses of SMEs when they are fined, and this may be the last straw that breaks the camel’s back for SMEs.
“This move runs counter to the government’s desire to revive the country’s economy. Is this wise when the government is actively working to revive the economy?”
Foo said increasing fines for stubborn violators of SOPs and repeat violators is the right direction but the way the penalties are to be meted out lacks clarity and the fines are too much for SMEs and individuals.
Source: https://www.theborneopost.com/2021/03/01/review-hefty-increase-in-fines-sme-sabah/