KUALA LUMPUR – The Malaysian Employers Federation (MEF) has urged the government to accelerate the National Recovery Plan (NRP) to Phases 3 and 4 to ensure businesses in the non-essential sectors survive.
MEF president Datuk Syed Hussain Syed Husman said the prolonged movement control order (MCO) since March last year has adversely affected businesses in non-essential sectors.
“MEF is seriously concerned by the plight of those in the fashion, textile, and apparel businesses,” he said.
According to the Malaysian Fashion, Textile, and Apparel Federation, the industry is losing a whopping RM163 million daily.
He said the industry generated RM27 billion in export value in 2019 and RM21 billion in 2020, but 15% of firms ceased operations in 2020, and more than 30% are currently on the brink of collapse due to lack of cash flow and a dim future.
“Moreover, four renowned foreign-owned multinational textile/apparel factories have shut down operations in Malaysia and retrenched about 6,000 employees in 2020.
“This caused a chain reaction that had devastating impacts on many local SME manufacturers within the supply chain that were forced to shut down or downsize, resulting in about 15,000 job losses,” added Syed Hussain.
He said the prolonged MCOs have caused massive meltdowns to international supply chains as companies face litigation and risk losing overseas customers.
The supply chain employs about 500,000, all now at risk of losing their jobs due to the prolonged lockdown.
Syed Hussain said that more than 30% of retailers may collapse before the nation even reaches Phase 3 of the NRP, causing 150,000 employees to be retrenched.
Although the NRP will allow certain sectors to operate in Phase 3, including the fashion, textile, and apparel industry, Syed Hussain believed that due to the current setbacks, Phase 3 will take longer to achieve.
“We propose that the NRP be accelerated to Phases 3 and 4 with employers and the rakyat paying more attention to biosafety, and to implement the necessary safeguards and comply strictly with established standards on health, safety, hygiene, and air quality in particular,” he said.
“As responsible employers, we should demonstrate serious responsibility and reassure the rakyat and the government by providing a safe, healthy, and hygienic working environment.”
Syed Hussain said the Safety and Health Department had recently developed guidance on internal air quality to promote improved ventilation and indoor air quality at workplaces, homes, and public places during the pandemic.
He said the industry has not been the only one hit hard during the pandemic, as many other non-essential industrial sectors have also been pushed to the edge, including the retail, tourism, and hotel sectors.
“We fear that the situation will worsen if these non-essential sectors are forced to remain closed during Phases 1 and 2 of the NRP.
“We urge the government to review the NRP threshold set by the National Security Council to accelerate to Phases 3 and 4 without delay,” he said. – The Vibes, July 20, 2021
