KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) has asked the government to pump a RM200 billion stimulus package, with a RM30 billion direct fiscal injection, into the economy over concerns that the extension of the movement control order (MCO 3.0) may have a devastating impact on small and medium enterprise (SME) manufacturers.
President Tan Sri Soh Thian Lai said with almost 80 per cent of all businesses falling into non-essential sectors that were not allowed to operate and with only 60 per cent capacity operations allowed for essential sectors, the extended lockdown would certainly cripple the entire manufacturing sector and its contribution to global supply chains.
“With companies in the US and the EU starting to operate at full force, it is imperative that Malaysia, as a key manufacturing hub, has to support these markets as part of their global supply chains.
“It is also feared that the extended Full MCO is going to have a profound negative impact on investments, especially foreign direct investment, as well as scaring away foreign investors,” he said in a statement on Saturday.
Soh asserted that the direct financial assistance under PEMERKASA Plus in the form of a one-month extension of the Wage Subsidy Programme 3.0, which is only for local workers; a three-month automatic loan moratorium for individuals and SMEs; and a one-month Human Resources Development levy exemption does very little to assist most manufacturing companies.
He said the assistance will not be able to sustain the industry over the extended period of lockdown and post-lockdown.
Hence, he said the industries need a big relief fund to shore up its recovery to avoid the country going into the worst recession which will take years to recover.
Meanwhile, the association gives its full support and cooperation to the rollout of the Public-Private Partnership Industrial COVID-19 Immunisation Programme (PIKAS), under Phase 4 of the National COVID-19 Immunisation Programme, which will kick off on June 16, 2021.
“We hope that the daily vaccination rates under PIKAS could be increased to 300,000 per day through the Vaccine Administration Centre and mobile vaccination trucks.
“In addition, the government should also expedite the nationwide mass testing as part of the Test, Trace and Treat protocol,” he said. – Bernama