MAA urges government to allow auto industry to resume operations, says economic damage is being felt
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A month and a half after the start of the nationwide lockdown that began on June 1, the Malaysian Automotive Association (MAA) calls on the government to allow the resumption of auto sector activities in states currently subject to the enhanced movement control ordinance (EMCO) as well as those of phases one and two of the national recovery plan (NPR).
He said that with the Malaysian automotive industry heavily dependent on the domestic market, the continued shutdown of production and distribution of automotive products (slated to resume in phase two of the PNR) as well as vehicle sales will have serious consequences. far-reaching implications for the entire automotive ecosystem nationwide.
According to MAA Chairman Datuk Aishah Ahmad, the entire automotive sector supply chain has been severely affected, especially by the complete shutdown of operations in EMCO states / localities such as Selangor and Kuala Lumpur. “Feedback received from many of our members has indicated that business operations, even in non-EMCO member states, are hampered due to disruptions in the supply chain,” she said in a statement. Press release.
The association said the consequences resulting from shutdowns of auto factories, workshops and parts distribution centers in Selangor and Kuala Lumpur are indeed very serious. He said the longer these stop working, the greater the damage that would be inflicted on the auto industry and the country.
He said that while auto companies might suffer from lost revenue, profitability, export markets and business closures, the government will also lose in terms of declining revenues from excise taxes, import duties, sales taxes and road taxes for motor vehicles.
He added that Selangor and Kuala Lumpur account for almost 50% of Malaysia’s total industry volume (TIV) per year, and many of the major automotive companies for the production of vehicles and components are located in these two states. In addition, some MAA members also have their single and / or central distribution center (for vehicles and spare parts) located in Selangor and KL.
As such, the association calls on the government to allow automotive sector activities – such as workshops and distribution centers for passenger / commercial vehicles as well as aftermarket companies – to operate with immediate effect, although only to a certain capacity and with Strict Standard Operating Procedures (SOPs) in place, in EMCO and Phases 1 and 2 of the National Recovery Plan (NRP) States.
In particular, he said the reopening of auto workshops and parts centers in EMCO states should be dealt with swiftly, as their continued closure would not only cause inconvenience to all consumers in general, but could also put endanger those who continue to use defective vehicles on the road, the inability to repair or replace defective parts of these vehicles posing a serious risk to all road users.
In addition, in order to reduce congestion in ports, the MAA is asking the government to grant a window of two to three days per week for the reception and storage of goods for the automotive sector, similar to what was practiced during of the First Order Movement Control (MCO) last year.
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