KUALA LUMPUR – Despite lingering threats and risks linked to the Covid-19 pandemic and the new Omicron variant, the Federation of Malaysian Manufacturers (FMM) foresees better business prospects in 2022 as compared with last year.
Speaking to The Vibes, its president Tan Sri Soh Thian Lai said the projection is seen to be possible as businesses are already seeing improvements in sales as they progress with recovery.
However, Soh said, 2022 will still see the recovery of most companies as they restart and ramp up operations to reach a sustainable and stable position in terms of business and finance, before they are able to start achieving pre-Covid-19 position and growth.
Noting that the recent floods have impacted companies and factories particularly in Selangor, Pahang and Perak, he said this would derail business recovery and impact business prospects.
In order to maintain or regain the confidence of investors during this period, it is important for the government to continue to support investors in the manufacturing sector by ensuring a conducive and friendly business and investment climate.
“The government should also support business transformation, technology and digitalisation adoption, productivity enhancement and innovation, as well as the strengthening of trade relations via both domestic sales and exports,” he said.
He has urged Putrajaya to support human capital needs especially in terms of skilled manpower – particularly in technical and vocational education and training.
He explained that this is given the changing needs in human capital development arising from global megatrends such as disruptive technologies, including Covid-19, which have significantly changed the structure of future jobs, skills requirements and demand on the education system.
Floods cost 100 companies nearly RM200 mil loss
In related matters, the businessman said the recent floods described as one of Malaysia’s worst flood disasters in living memory have led to substantial damages to property, assets and products, as well as disruption to production and supply chain operations.
Based on a quick survey conducted by FMM from December 22 to 24, 2021, on the impact of the floods on members in affected states, a total of 100 companies responded that they were badly affected by the floods, with estimated damages amounting to RM195,355,465.”
In addition, he said, there were significant productivity losses as many workers have not been able to get to work given that many of the main highways had to be closed to traffic or their own homes were hit by the floods.
FMM predicts that losses would be higher as companies are still assessing the exact magnitude of damages to plants and machinery, as well as their impact on domestic and export sales.
Soh has therefore appealed to the government to extend the loan moratorium for another three months to help ease recovery for industries affected by the floods.
“We also call on the government to provide some form of one-to-one grants or double tax deduction on expenditure for the repair or replacement of machinery damaged by the floods, as well as repair to property,” he added.
Similarly, Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) secretary-general Datuk Dr A.T. Kumararajah also shared Soh’s sentiments, saying that the government must come up with specific and tailored flood mitigation programmes to boost confidence among business owners.
Dr Kumararajah said 2021 had been a tough and exhausting year for business owners as they had to suffer the impact of the Covid-19 pandemic.
“They should be given all the leeway to secure grants to sustain their businesses, rental subsidies and logistics.
“All these should be provided and subsidised by a government-initiated programme across the nation,” he explained.
He predicted that the country’s economy will probably settle down in January 2022.
However, due to the resilience of Malaysia’s market and economy, he is confident that it will rebound quickly to make up the figure achieved in the first quarter of this year.
“This is primarily because of demands before Chinese New Year. Despite the floods and the pandemic, it seems that the government was able to manage the new Covid-19 variant better this time around.”
Reluctant to pass up the opportunity to help flood victims get back on their feet, he said MAICCI will be rolling out assistance to affected areas.
“We are planning to set up mobile units, beginning next week, to help reconnect the people with all the assistance from the government in terms of grants and loan moratoriums.” – The Vibes, January 3, 2022
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