THE severe floods of December 2021 have come and gone but companies, big and small, that were unfortunately located in the flood-prone areas, are still reeling from the after-effects.

       Against losses ranging from a few hundred thousands to tens of million ringgit, some companies are seeing a faster rate of recovery, while others with lost assets are still struggling to find their footing.

       Aggravating the situation is the damage inflicted on their supply chains that is also affecting their pace of recovery. Malaysia Bhd" src="https://apicms.thestar.com.my/uploads/images/2022/02/14/1480279.jpg" onerror="this.src='https://cdn.thestar.com.my/Themes/img/tsol-default-image2017.png'" style="float: right; width: 150px; height: 271px;">Kenji Kamada, managing director, Panasonic Manufacturing Malaysia Bhd

       Some may get help from various sources, but there are those who are waiting to apply for the government’s emergency fund with, hopefully, less stringent conditions.

       Small and medium enterprises (SMEs), which are the driving force behind the country’s economic development, require this speedy assistance.

       Following the record downpour, an important question to address is whether we have started to draw up future-proof plans against such occurrences?

       The government said a smart tunnel system in Shah Alam, one of the worst-hit areas, is being considered.

       There should also be other immediate, short term measures in view of the unpredictability of the weather these days.

       Whether it is on a government or individual basis, we should not wait too long as “time and tide waits for no man.”

       One example is Panasonic Manufacturing Malaysia Bhd, which is consulting with its contractors on long-term measures to mitigate the impact of floods.

       The management is looking to lobby together with the neighbouring factories to the local authorities to provide a longer term solution, such as the building of a higher embankment along the nearby river or the deepening of river beds.

       The management is still in the process of preparing the appeal.

       The whole of its Shah Alam plant was affected by the floods except for the warehouse storing finished goods; damaged machinery, parts and raw materials as well as finished goods at the external warehouse have been identified.

       As some of its suppliers have also been impacted, Panasonic Manufacturing is sourcing for materials from other suppliers and is seeking support from its sub-contractors.

       While it is still assessing the extent of the damage, the Shah Alam plant is expected to resume full operations by next month, depending on the recovery of its suppliers.

       At Panasonic Manufacturing, the current levels of production are 40% for fan products and 80% for vacuum cleaner products.

       Working closely with insurers on property damage, Fraser & Neave Holdings Bhd (F&N) has estimated the damage to be about RM40mil.

       The biggest items that were damaged included finished goods, raw materials and packaging materials.

       Lines at the F&N plant in Shah Alam are being restarted cautiously, it said recently, with submerged motors and parts checked, repaired or changed.

       Some SMEs have lost all their machinery in the flood and are trying to restart with borrowings from friends, banks and advance payments from customers.

       A factory owner who manufactures engineering parts had lost all RM3mil worth of its automated electronic control systems in three metres of water.

       He must maintain his supplies to foreign-owned factories in Malaysia and has shifted to a new factory on higher ground with new machines and has restored about 20% of its production capacity.

       Laboratory owner Louis Ooi, after reviving 100% of operations, says that it is about 15% is below capacity due to loss of assets.

       Two of Ooi’s vehicles have been declared as total loss and replacement for new ones will take at least six to nine months; there are also estimated losses for furniture and some analytical sampling equipment at RM150,000.

       An employee has helped by converting his new house into a satellite office for administrative operations, says Ooi, who is also the southern chairman of Small and Medium Enterprises Association (SAMENTA).

       SAMENTA has urged the government to look for an immediate, short term solution such as regularly deepening and widening of main rivers and hopes the government will also craft long-term solutions such as the proposed concept of sponge cities, smart tunnels and the construction of dams.

       Other feedback indicated lots of cleaning and repair work being carried out, with only some small operations being revived; these SMEs had reduced operating costs but are still facing financial difficulties.

       The flood situation has affected their money collection while business had slowed down.

       One SME owner estimated that he would only be able to revive full operations by July or August, provided he can get some low interest financing. Otherwise, he will be considering retrenchments.

       In fact, those that have little cash reserves, friends or customers to fall back on, are in the process of closing down.

       Another SME has put in some insurance claims and is looking for low-interest financing to support daily operations and bring in more products.

       Among the SMEs, financial aid is urgently sought as they work their way through the tedious process of revival.

       The floods are over for now, but the problems they have left behind are causing a lot of suffering and possibly more business closures.

       Yap Leng Kuen is a former StarBiz editor. The views expressed here are the writer’s own.