KUALA LUMPUR: Manufacturers in non-essential sectors, which had seen sales plummet and cashflow nearly dried up due to the Covid-19 restrictions, have appealed to the government to let them resume operations at 50% workforce capacity.

       The Federation of Malaysian Manufacturers (FMM) has requested for the reopening regardless of whether their operations are in phase one or two of the National Recovery Plan (NRP).

       “FMM reiterates its call on the government to immediately allow all non-essential sectors to resume operations at 50% workforce capacity or higher if they have achieved higher levels of vaccination company-wide with continued strict adherence to standard operating procedures (SOPs) and Covid-19 testing of workers,” FMM president Tan Sri Soh Thian Lai said in a statement yesterday.

       In a recent survey conducted by FMM on the impact of the lockdown on non-essential sectors and their supply chains, 93% of respondents said total sales, including domestic and export sales, had reduced.

       Additionally, 82% said exports were reduced mainly by up to 30% and 93% said their cash flow has also been reduced.

       Soh said the five states of Kedah, Selangor, Negri Sembilan, Melaka and Johor, as well as the three federal territories of Kuala Lumpur, Putrajaya and Labuan remained in phase one of the NRP with only 12 essential sectors allowed to operate at a workforce capacity of 60%.

       The other states have transitioned to phase two in stages starting from July 5.

       Soh pointed out that industries in many non-essential sectors comprising micro, small and medium enterprises (MSMEs) as well as industries that are part of global supply chains with export commitments have remained closed for about two months since May 25, 2021.

       Under phase one of the NRP, many critical sectors such as the iron and steel, non-metallic mineral industries, rubber-based product manufacturers (with the exception of rubber gloves), and machinery and equipment (with the exception of food and health related sectors), continue to be closed.

       “Factory closure is killing these industries as they are running out of reserves to keep them going despite the financial assistance from the government in the form of wage subsidies and the automatic loan moratorium.

       “Manufacturers in the non-essential sectors, especially the MSMEs, are in a dire state of affairs and are severely impacted from this prolonged business closure,” he said.