KUALA LUMPUR – In a statement on July 13, the Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor (KLSCCCI) made an urgent plea to the Selangor menteri besar to adopt alternative measures amid feedback from its members that are teetering on the brink of bankruptcy and closure.
KLSCCCI noted that micro enterprises, small and medium enterprises (SMEs) and gig workers are suffering after enduring over 17 months of various editions of the movement control order (MCO), and noted that its member Malaysia Retail Chain Association’s (MRCA) June survey showed that 97% of retailers have 4.5 months of cash flow left and that by now they will only have about three months of cash flow to last.
KLSCCCI noted that foreign chambers of commerce representing countries such as Germany, the Netherlands and Japan have also expressed their apprehensions and had warned about the possibilities of some multinational corporations leaving Malaysia.
Instead of continuing the enhanced movement control order (EMCO) that most parts of Selangor are under for the July 3 to July 16 period, KLSCCCI listed six “less damaging” approaches and measures that businesses can work together with the Selangor government to resuscitate the state’s economy.
KLSCCCI pointed out that Kuala Lumpur’s targeted EMCO approach of only locking down buildings affected by COVID-19 is an efficient way to manage infections and allowing businesses to resume quickly, comparing it to Selangor’s EMCO lockdowns on affected districts that ineffectually covered almost the entire state.
While saying that mass testing is a necessary part of a successful strategy against COVID-19, the businesses said this would inevitably result in the detection of more COVID-19 cases as compared to states who do not do mass testing, further saying that Selangor cannot rely on the number of infections alone to implement strict containment measures.
“Kuala Lumpur’s targeted approach of locking down buildings proved to be far more effective and less disruptive to businesses. This is indeed a win-win approach,” the KLSCCCI said in the statement.
KLSCCCI also urged the Selangor menteri besar to immediately lift the lockdowns on entire districts in Selangor to help businesses from sinking deeper into financial difficulties after enduring losses for the past 17 months.
In justifying the lifting of the current district-wide EMCO lockdowns, KLSCCCI pointed out that the manufacturing sector and retail sector (including malls and standalone shops) respectively contributed only 9.7% and 0.8% of COVID-19 cases in May 2021, as compared to Health Ministry data showing 69% of cases are sporadic and from within the community.
KLSCCCI said the low levels of infections among the manufacturing and retail sectors was due to their strict adherence to standard operating procedures, saying: “Hence, it is an unfair approach of implementing lockdown across-the-board as the sledgehammer approach of a district-wide lockdown penalises sectors that have diligently implemented and adhered to the SOP.”
Selangor should also do away with the “fallacy” of categorising economic activities as either “essential” and “non-essential”, arguing instead that all economic activities are actually essential as they are interrelated and integrated through supply chains.
Instead of the current approach of putting out a “positive list” or listing the type of businesses that can operate, KLSCCCI suggested that Selangor instead adopt a “negative list” to list down activities that cannot comply with the SOPs of physical distancing, masks-wearing and temperature screening.
Saying that the COVID-19 virus is already endemic in Malaysia as 69% of cases are spreading within the community, KLSCCCI said there is a need to rethink the virus containment strategy and re-strategise to manage the pandemic from an endemic perspective.
It also noted that it is harder to test, control and break the chain of infections as most infected persons are asymptomatic, also noting that a person who has tested negative for COVID-19 could become positive the very next day.
Ultimately, KLSCCCI said speeding up mass COVID-19 vaccination to achieve herd immunity is the solution, urging Selangor to immediately mobilise all public and private resources to accelerate vaccinations in the state and to demand vaccines from the federal government.