KUALA LUMPUR: The government should consider focusing on targeted lockdown in states or areas with the highest number of infections to break the chain of Covid-19 infections, according to the Federation of Malaysian Manufacturers (FMM).
Its president Tan Sri Soh Thian Lai said population in the affected states or areas should be given the priority to vaccination, in particular businesses in key economic sector.
"States or areas with lower cases/under control must be allowed to resume economic activities without any distinction between essential and non-essential sectors but with continued emphasise on strict adherence to the Covid-19 standard operating procedures (SOPs) and preventive measures to minimise the impact on business and the economy overall and speed up recovery," he told the New Straits Times recently.
Early this month, the government enforced a two-week Enhanced Movement Control Order in Selangor's major sub-districts and several Kuala Lumpur localities from July 3.
Soh said the government should re-evaluate the sectors that can operate with due consideration given to export-based sectors given the significant 85 per cent contribution from manufactured exports to Malaysia's total exports.
This included their significant role in sustaining the local economy through their revenue to the nation, source of employment to the locals as well as substantial source of direct investments.
"There is grave fear of the damage due to this prolonged lockdown as it will affect the country's competitiveness as a key regional manufacturing hub for the many industries that are part of global supply chains and depend on the export market as their main source of revenue," he said.
FMM, which is made up of over 3,000 manufacturing and industrial service companies, called for the government to either include the export sectors into the essential sectors or at least allow them to operate at a 50 per cent capacity under Phase One of the National Recovery Plan.
"All industries operating under this new normal of business operations must strictly adhere to the Covid-19 SOPs and preventive measures where necessary," he said.
Separately, retailers and mall operators have desperately appealed for all malls and retail outlets to re-open by July 15 or when the 10 per cent vaccination target was achieved.
However, this should not include operations that are unable to meet the social distancing criterion and crowding.
The appeal was made via a joint-statement by Malaysia Shopping Malls Association, Malaysia Retailers Association, Malaysia Retail Chain Association, Bumiputra Retailers Organisation, Malaysia REIT Managers Association and Malaysian Association of Theme Park and Family Attractions last Saturday.
"The economic sectors that have diligently operated under strict SOPs and having achieved low risk environment should be encouraged and not be made to suffer for the inability of those that have caused the infections due to their lackadaisical non-compliance of SOP," they said.
The mall operators and retailers said they had been valiantly struggling for the past 16 months with critical cash flow to sustain and any prolongation would simply be the final knell for their businesses and the industry as a whole.
"We cannot afford to give up and again urgently appeal to the authorities to give us at least a fighting chance to help ourselves to survive and start on the precarious journey to recovery.
"We desperately appeal to the authorities to allow the entire retail sector which are not at risk to re-open immediately especially the shopping malls and retail shops including street front shops, including indoor playland and family entertainment attractions with strict compliance to stringent SOPs," they added.
Meanwhile, MIDF Research said the lockdown extension would continue to affect certain business segments.
"The lockdown will be a temporary drag to the economy especially in the middle of the year, and the eventual easing of the restrictions will allow reopening of the economy in the later part of the year."
The firm said there seemed to be a dual growth experience in the economy.
The trade sector, it added, would continue to benefit from growing external demand, but the weakness in domestic spending would affect domestic-oriented industries and selected services sub-sectors such as the wholesale and retail trade, accommodation, and even the transport services industries.
On the positive note, MIDF Research said the RM150 billion Pemulih fiscal stimulus package would provide support to the rakyat and businesses.
"Undeniably, there are certain segments in the economy that are in difficulties to cope and survive, especially small and medium enterprises with cash flow problems and individuals who lost their source of income," it added.
Source: https://www.nst.com.my/business/2021/07/704985/targeted-lockdown-should-be-reconsidered-fmm