FMM hopes govt allows non-essential sector to resume at 50 pct capacity

KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) hopes the government will allow manufacturing companies in all non-essential sectors to resume at 50 per cent workforce capacity, regardless of whether they are located in Phase One or Two of the National Recovery Plan (NRP).

Its president, Tan Sri Soh Thian Lai said manufacturers in the non-essential sectors, especially the micro, small and medium enterprises (MSMEs), are currently in a dire state of affairs and are already severely impacted by the prolonged business suspension.

According to FMM's latest survey, the non-essential sector's sales have been severely impacted, and businesses are facing severe cash flow constraints since pending and future orders are interrupted with no certainty on when operations are be allowed to resume.

"Meanwhile, suppliers are expecting to be paid on time, wages to employees have to be paid in full even if no actual work was performed, utilities and rental payments are due, logistics cost has increased due to cancellation/postponement of shipments and/or cargo stuck at ports, and there are penalties imposed on delay of delivery.

"This has put most businesses in the non-essential sectors in an extremely precarious situation with the risk of collapsing, resulting in high unemployment if restrictions on business operations continue indefinitely," he said in a statement today.

Soh said there is also the fear that if they are not allowed to resume operations immediately, many will not be around to help rebuild the economy once businesses are allowed to reopen.

-- BERNAMA