PETALING JAYA: The government should allow the manufacturers and retailers of the fashion, textile and apparel sectors to operate in Phase Two of the National Recovery Plan (NRP) as the industry is losing about RM163mil per day, says the Federation of Malaysian Fashion, Textile and Apparel.

       Its president Datuk Seri Tan Thian Poh said they are deeply concerned by the current situation as they might only be allowed to operate when the country reaches Phase Three of the NRP.

       "There is a great urgency for the industry to be allowed to operate in Phase Two to avoid the collapse of the industry beyond salvation," he told a press conference on Friday (July 16).

       A list of proposals from the federation will be submitted to Prime Minister Tan Sri Muhyidin Yassin, the International Trade and Industry Ministry, Domestic Trade and Consumer Affairs Ministry and the National Security Council, he added.

       Since the first movement control order (MCO) last year, Tan said about 15% of fashion, textile and apparel businesses have ceased operations while 30% are on the verge of ending their businesses due to lack of cash flow and future uncertainties.

       "Due to the numerous MCOs, the fashion, textile and apparel manufacturers’ export values have been reduced from RM27bil in 2019 to RM21bil last year.

       "We reckon that the situation will deteriorate further and will be beyond salvaging as some of our members are facing litigation and risk losing their overseas customers.

       "These customers will move their future orders to other countries due to the uncertainties if we are not allowed to operate soon," he said.

       He also noted that four renowned foreign-owned multinational textile and apparel factories shut down their business operations in the country and retrenched about 6,000 employees last year.

       "The chain effect continues. Many local SMEs in the industry have also shut down or downsized their businesses resulting in about 15,000 lost jobs.

       "The situation will worsen if they are not allowed to operate under Phase Two," he added.

       He said the supply chain of the fashion, textile and apparel industry employs about 500,000 people nationwide.

       "A prolonged shutdown will put all 500,000 jobs at stake, and this will definitely aggravate the unemployment rate in the country.

       "We foresee that more than 30% of retailers will collapse before Phase Three of the NRP and about 150,000 employees will be retrenched," he said.

       The federation also applauded the government's effort to expedite the National Covid-19 Immunisation Programme, and urged it to review the threshold set by the National Security Council and immediately move to Phase Two of the NRP.

       "I think the country is on the right track because about 30% of Malaysians adults have received their first dose of Covid-19 vaccine while more than 17% have been fully vaccinated.

       "The country should move to Phase Two despite the high cases as other developed countries have accepted that Covid-19 is already in the community," he said.

       The group also urged the government to allow all businesses to resume full operations if all their employees have been fully vaccinated.