Malaysia

MCO needed, but extend moratorium for hard-hit sectors: Langkawi group

Meanwhile, hotel association says employees face risk of immediate retrenchment if wage subsidies end

Updated 5 years ago · Published on 16 Jan 2021 11:39AM

MCO needed, but extend moratorium for hard-hit sectors: Langkawi group
Langkawi is 92% dependent on tourism, and most of its guests come from states that have been placed under lockdown, says a business group. – AFP pic, January 16, 2021

by Ian McIntyre

LANGKAWI – There is a pressing need for the Finance Ministry to consider extending the loan moratorium for sectors hit hard by the latest movement control order (MCO), of which wealthy states have been put under, said a business group.

The lockdown is in effect in the Federal Territories, Selangor and Penang, as well as Malacca, Johor, Sabah and Kelantan.

Langkawi Business Association deputy president Datuk Isaac Alexander told The Vibes that the moratorium should be targeted, to ensure the survival of those who truly need it.

“‘Kita jaga kita’ should be our financial goal, so we can recover eventually. We respect that people’s lives come first, but we are 92% dependent on tourism, and most of our guests are now in locked-down states.

“The island had looked all set for a rebound with an influx of local tourists, so yes, the new action will affect us here in a big way.”

He said the MCO has dealt a huge blow to Langkawi’s tourism industry, but members understand that it is necessary for the nation’s safety.  

“We want to help the Health Ministry, but we also need the standard operating procedure to be concise and clear to all. We welcome its enforcement.”

He also urged for Social Security Organisation assistance to be extended by another six months, so that employers are able to retain workers.

An emergency has been declared to contain Covid-19, granting the government wide-ranging powers.

“We hope these wide powers will be used wisely to only fight the pandemic, and improve the well-being of the people and country,” said Alexander.

Malaysian Association of Hotels chief executive Yap Lip Seng said Putrajaya must balance lives and livelihoods during the MCO.

“We urge the government to extend the proposed wage subsidy structure of 50% for employees within a pay structure of below RM4,000, and 30% for those up to RM8,000. Industries need this to sustain themselves.”

Otherwise, he said, hotels will be forced to retrench employees immediately.

“We have already recorded a minimum of 6% being let go from the industry since last year.” - The Vibes, January 16, 2021

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