Malaysia manufacturers union call for additional COVID-19 stimulus
The Federation of Malaysian Manufacturers (FMM) has called on the government for an additional RM200 billion (US$48.35 billion) stimulus package and a RM30 billion (US$7.25 billion) fiscal injection.
This follows after the nation extended its movement control order (MCO) 3.0 for another two weeks from June 15 to June 28.
The extension of the MCO will have a devastating impact on SME manufacturers that are just starting to show signs of recovery, it said, adding that about 80% of all businesses fall under the non-essential sector and are not allowed to operate under the extended lockdown period.
During MCO 3.0, businesses under the essential sector are allowed to operate at 60% capacity, which would cripple the entire industry and affect its contribution to global supply chains, it said.
“With companies in the US and the EU (European Union) starting to operate at full force, it is imperative that Malaysia, as a key manufacturing hub, support these markets as part of their global supply chains,” said FMM president Soh Thian Lai in a statement.
“It is also feared that the extended full MCO (FMCO) is going to have a profound negative impact on investments, especially foreign direct investment, as well as scaring away foreign investors,” he added.