KUALA LUMPUR – Some 1,600 coffee shops and restaurants are expected to shutter without immediate government aid with the imposition of the third movement control order and “half-baked” decisions.
Business association leaders and Klang MP Charles Santiago have issued an urgent plea to Putrajaya, requesting for assistance as food and beverage outlets and hair salons continue to see a decline in sales.
“In the last one week, restaurant owners have lost 70% of their sales. According to the Malaysian Chinese Restaurant and Coffeeshop Association, business owners are seeing a 90% drop in sales whenever dine-ins are prohibited.
“Another 5% (1,000 coffee shops and 600 restaurants) will close if the government does not provide immediate help,” Santiago said in a statement.
He added that the MCO has affected other businesses as the Malaysian Hairdressing Association reported that staffers have been asked to reduce working hours or take unpaid leave due to low sales.
“They anticipate a 40% lay-off if the government fails to provide financial assistance.”
To address the woes of business owners, Santiago has urged the government to instruct banks to provide a six-month loan moratorium, an extension of the wage subsidy programme for six months, six months of rental relief, a one-off RM5,000 grant, a 15% discount on water and electricity bills, and a 25% cut on migrant worker levies.
He also slammed the government for making “half-baked” decisions, saying they could adversely impact businesses and push them to the edge.
The statement by Santiago was made after a joint press conference with business association leaders this morning. – The Vibes, May 12, 2021
