KUALA LUMPUR, May 19 — The American Malaysian Chamber of Commerce (Amcham) has today voiced its outright rejection of a proposed full lockdown in any state across the nation by the federal government, urging the government to instead implement best practices from previous iterations of movement control orders (MCO).
Amcham chief executive Siobhan Das warned that imposing further lockdown measures similar to the movement control order (MCO) enforced in March 2020 will negatively impact investment sentiments and threaten the positive momentum of the country’s trajectory towards economic recovery in the current quarter.
This is despite voicing its support for the Malaysian government in taking strong measures to curb the sharp increase in daily Covid-19 cases and easing the burden on the country’s healthcare system.
“Such an approach does not take into account the learnings and infrastructure put in place since last year and would have an immediate negative impact on the already hard-hit local economy.
“It would also have long and far reaching repercussions for businesses currently located in the country and their role in global supply chains.
“Drawing from the collaboration between industry and government and recognising the crucial role that Malaysian workers and businesses play in the supply chain network, we urge the government to implement best practices from previous MCOs,” she said in the statement.
Amcham said if a lockdown was unavoidable, then a negative list should be instituted to ensure intricate ecosystems remained intact while ensuring the continuation of workforce mobility under consistent and clear rules.
“This would automatically include manufacturing and support services such as medical devices, Electrical and Electronics (E&E) including semiconductor, and Information & Communication Technology (ICT) and their supporting SMEs which were found to be crucial to the country,” it said.
The association also reiterated its recommendation to allow businesses to self-regulate operational capacity despite having to halve the number of workforce on-site at any given time.
On standard operating procedures (SOP), the group also called on the government to provide for clear and consistent messaging to minimise confusion since this will enable smooth implementation and enforcement of any SOPs.
It also cited the recent spats between federal and state administration on vaccine procurement and the opaqueness behind the Hotspot Identification for Dynamic Engagement (HIDE) system as examples that could potentially erode both public and business confidence in Malaysia in handling the pandemic.
“Additional steps must be taken to showcase the country’s ability to manage its economy and the safety of its people through the iterations of Covid-19 while firmly maintaining its position in the global supply chains.
“Advanced notice and allowance for scenario planning with clearly set criteria will enable businesses to plan ahead without facing the disruptive task of juggling ever-changing SOPs which update as frequently as on a daily basis,” it said.
Earlier today, the EU-Malaysia Chamber of Commerce and Industry (Eurocham) Malaysia also warned the Malaysian government against a full lockdown, citing many businesses in the midst of recovering from last year’s MCO ) may not be able to survive another one.
On Monday, Health Minister Datuk Seri Dr Adham Baba said his ministry is mulling the implementation of a total MCO lockdown in Selangor, should the number of cases continue to rise.
