KUALA LUMPUR – The Federation of Malaysian Manufacturers (FMM) has asked the government to pump a RM200 billion stimulus package, with a RM30 billion direct fiscal injection, into the economy over concerns that the extension of the movement control order may have a devastating impact on small and medium enterprise (SME) manufacturers.
President Tan Sri Soh Thian Lai said that with almost 80% of all businesses falling into non-essential sectors not allowed to operate and with only 60% capacity operations allowed for essential sectors, the extended lockdown would certainly cripple the entire manufacturing sector and its contribution to global supply chains.
“With companies in the United States and the European Union starting to operate at full force, it is imperative that Malaysia, as a key manufacturing hub, has to support these markets as part of their global supply chains.
“It is also feared that the extended full MCO is going to have a profound negative impact on investments, especially foreign direct investment, and scare away foreign investors,” he said in a statement today.
Soh said that the direct financial assistance under Pemerkasa Plus – which takes the form of a one-month extension of the Wage Subsidy Programme 3.0, which is only for local workers; a three-month automatic loan moratorium for individuals and SMEs; and a one-month human resources development levy exemption – does very little to assist most manufacturing companies.
He said the assistance will not be able to sustain the industry over the extended period of lockdown and post-lockdown.
As such, Soh said, the industry needs a big relief fund to shore up its recovery to avoid the country going into the worst recession ever, which will take years to recover from.
Meanwhile, the association gave its full support and cooperation to the roll-out of the Public-Private Partnership Industrial Covid-19 Immunisation Programme (Pikas), under phase four of the National Covid-19 Immunisation Programme, which will kick off on June 16.
“We hope that daily vaccination rates under Pikas can be increased to 300,000 per day through the vaccine administration centre and mobile vaccination trucks.
“In addition, the government should also expedite nationwide mass testing as part of the test, trace and treat protocol,” he said. – Bernama, June 12, 2021
