KUALA LUMPUR – The Malaysian-German Chamber of Commerce & Industry (MGCC) has warned the Perikatan Nasional government that unclear standard operating procedures (SOPs) and inconsistent enforcement may lead investors to shift operations elsewhere, causing unemployment to locals.
MGCC said even though the enhanced movement control order (EMCO) is enforced in most areas of the capital and Selangor, it is not reflected in the International Trade and Industry Ministry (Miti) Covid-19 Intelligent Management System (CIMS 3.0).
“This is a problem as manufacturing companies depend on Miti exemption letters to open, and allow staff to travel to and from work,” it said in a letter to Prime Minister Tan Sri Muhyiddin Yassin that was sighted by The Vibes.
The letter was cc’d to Deputy Prime Minister Datuk Seri Ismail Sabri Yaakob, Senior Minister Datuk Seri Hishammuddin Hussein and Selangor Menteri Besar Datuk Seri Amirudin Shari.
MGCC president Joseph Gross said several companies have been subjected to contradicting SOP orders, leading to complications in the supply chain.
“Since the MCO started on June 1, our members are increasingly worried of a collapse of the supply chain if only certain sectors are allowed to operate, but the supplying industries cannot do so.
“If certain sectors are allowed to open, but suppliers of packaging, parts and raw materials, as well as logistics, cannot operate or can open only on very minimal capacity, the supply chain will be disrupted and eventually break down, which can have dire effects on Malaysia.”
The disruption in operations may also cause companies to relocate if they are unable to meet production demands, he added, leading to a loss of employment in Malaysia.
MGCC also called for better security of expatriates and their families, as many of its member companies employ expatriates for select positions.
“Counter services at the Immigration (Department) in several states, and at the Expatriate Services Division and Malaysia Digital Economy Corporation, are closed since June 1.
“This means that no pass stickers can be endorsed, and a lot of other immigration-related services, which require personal visits, cannot be performed.”
There have also been cases of expatriates employed by MGCC member companies who have been waiting to endorse their pass stickers since February, he added.
“They are worried of fines and raids because they have approval letters but no valid pass stickers in their passports.”
MGCC suggested that the government implement stricter controls at manufacturing dormitories and facilities, instead of closing down all facilities and harming the entire economy.
On Friday, United States ambassador to Malaysia Brian D. McFeeters pointed out that long-term American investors are beginning to feel discouraged battling difficulties in navigating the Malaysian environment.
He stressed that problems are cropping up regarding predictability and implementation of regulations, especially in view of the conditions brought about by the Covid-19 pandemic and political turmoil.
“There is a bit of anxiety in the regulatory climate in terms of certainty and stability in Malaysia.
“They (investors) do not have advanced notice about regulations. They want more chances to comment and discuss regulations before they come out. They want more clarity in their (regulations) implementation.”
McFeeters expressed hope that a consultative mechanism will be arranged for business associations or companies to meet on a quarterly basis to hear what the government is planning, and what it wants to implement. – The Vibes, July 11, 2021
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