A month and a half into the beginning of the nationwide lockdown that started on June 1, the Malaysian Automotive Affiliation (MAA) is interesting to the federal government to permit automotive sector actions to renew in states at present below the improved motion management order (EMCO) in addition to these below section one and two of the nationwide restoration plan (NPR).
It stated that with the Malaysian automotive trade closely depending on the home market, the continued halting of manufacturing and distribution of automotive merchandise (deliberate to renew in section two of the NRP) in addition to gross sales of automobiles could have far reaching implications to the whole automotive ecosystem nationwide.
In keeping with MAA president Datuk Aishah Ahmad, the entire provide chain within the automotive sector has been significantly affected, notably by the entire shutdown of operations in EMCO states/localities like Selangor and Kuala Lumpur. “Suggestions obtained from a lot of our members indicated that enterprise operations even in non-EMCO states are hampered as a result of disruptions within the provide chain,” she stated through a press assertion.
The affiliation stated that the results arising from stoppages of automotive factories, workshops and components distribution centres in Selangor and Kuala Lumpur is certainly very critical. It stated that the longer these cease working, the higher the harm that will be inflicted on the automotive trade and the nation.
It stated that whereas automotive firms might undergo from lack of income, profitability, export markets and closure of companies, the federal government will even lose when it comes to decrease income collected from excise duties, import duties, gross sales taxes and highway taxes for motor automobiles.
It added that Selangor and Kuala Lumpur accounts for near 50% of Malaysia’s complete trade quantity (TIV) each year, and that most of the key automotive firms for each manufacturing of automobiles and parts are positioned inside these two states. As well as, some MAA members even have their sole and or central distribution centre (for automobiles and spare components) positioned inside Selangor and KL.
As such, the affiliation is interesting to the federal government to permit automotive sector actions – equivalent to workshops and distribution centres for passenger/industrial automobiles in addition to spare components companies – to function with rapid impact, albeit at sure capability and with strict customary working procedures (SOPs) in place, in states below EMCO and section one and two of the nationwide restoration plan (NRP).
Specifically, it stated that the reopening of automotive workshops and half centres in EMCO states was one thing that wanted to be addressed rapidly, as their continued closure wouldn’t solely trigger inconvenience to all customers at giant, however might also endanger those that proceed to make use of faulty automobiles on the highway, with the shortcoming to restore or change defective components in such automobiles posing a critical danger to all highway customers.
Moreover, with the intention to cut back congestion at ports, MAA is requesting that the federal government enable a window of two to a few days per week for receiving and storing cargo for the automotive sector, much like what was practised through the first motion management order (MCO) final yr.
