KUCHING, Jan 22 ― The Sarawak branch of the Federation of Malaysian Manufacturers (FMM Sarawak branch) today wanted the wage subsidy programme (WSP 3.0) to be applied to all states regardless of whether they are under the movement control order (MCO) or conditional movement control order (CMCO).
The branch chairman Datuk Seri Victor Hii Lu Thian said this is to ensure business continuity for the companies as disruption in operations in MCO states and areas would also have a direct impact on operation of companies in the areas under the CMCO, in particular those that depend on supplies and are part of the supply chain.
“The branch appeals to both the federal and state governments to extend the wage subsidy to all businesses impacted by the MCO and CMCO, especially Small and Medium Enterprises (SMEs),” Yii said in a statement.
He said control orders have affected their cash-flow and disrupted their supply chains because of the inter-dependency of businesses located in different areas within a state or across states.
He added these disruptions have caused delays in production and delivery to customers in both MCO and CMCO areas, causing businesses to incur further losses.
Yii said the branch is most concerned that the lack of wage aid in CMCO areas, particularly those in Sarawak, will cause more businesses to shut down, increase the unemployment rate in the state and adversely impact economic activities in the state and subsequently, Malaysia’s economic and GDP growth.
He said the branch appeals for the government to review their decision and revise the eligibility and allocation for the WSP 3.0 to include Sarawak so as to cushion the impact for businesses, particularly SMEs.
He said the branch will continue to encourage businesses to do their best to adapt to rapid changes due to the Covid-19 pandemic by identifying alternative working arrangements for their employees, re-imagining business-as-usual, and to comply with the labour laws and standards to ensure the continued wellbeing and safety of their employees.
Yii, however, said the branch applauds the federal government’s most recent efforts in introducing the Perlindungan Ekonomi dan Rakyat Malaysia (Permai) assistance package to ease the burden of the people and business sector during this unprecedented pandemic.
Prime Minister Tan Sri Muhyiddin Yassin recently announced that all employers operating in areas placed under the MCO, regardless of sectors, are eligible to apply for the WSP 3.0, which is projected to benefit 250,000 employers collectively hiring more than 2.6 million employees in MCO areas.
All the divisions of Sarawak, except Sibu, are placed under the CMCO.
The Sibu Division is under the MCO due to the sharp rise in the number of Covid-19 cases since the beginning of this month.
