The Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) views with deep concern regarding a much more adverse impact on the economy and businesses following the extension of Phase 1 of the National Recovery Plan, which has ended on 28 June 2021.

Feedback on the ground indicated that many businesses are in dire straits. They are unable to survive through a prolonged lockdown and teetering on the brink of bankruptcies and closing down. The economic devastation will be deeper and more damaging on the society if we continue with the extended Phase 1.

The 28 days of total lockdown nationwide have had dented the recovery pace of domestic economy and many businesses, such as the manufacturing and services sectors. Of the total 442 companies surveyed by ACCCIM, 77.1% of them still concerned about 3Cs (Cash flow, Credit and Costs).

The lockdown has threatened the survival of SMEs and micro enterprises. Low-and middle-income households, individuals and self-employed in the informal sector also suffered financial difficulties. 68.3% of businesses indicated that no confidence in economic recovery for this year. At least more than 60% of companies indicated poorer business conditions, cash flow and debtors’ condition in 2H 2021 compared to 1H 2021.

In this regard, ACCCIM urges the Government to make modifications to the Phase 1 extension to support some level of economic and business activities as well as our daily lives. Vaccination is the only solution to help build protection and return to normalcy.

1. All the economic sectors (export industries, manufacturing, construction, mining) and services sector, including en-bloc approval of the entire supply chains to operate with 60-70% manpower capacity under stricter SOP. The non-critical sectors also formed an important part of the supply chains to support critical sectors. Many businesses would suffer reputation/credibility risk and permanent loss of customers/markets if the orders were not fulfilled and hence, be dropped out from the global supply chains.
2. Made an easy to automatic approval process for the positive list of industries that are allowed to operate. The negative list (not allowed to operate) are high-touched sectors that require the removal of a mask when having meals together and high crowded places.
3. Stricter SOP that is simple, clear and consistent. The uniformity of enforcement and consistency of interpretations at the Federal, state and local authorities.
4. Use a targeted lockdown approach instead a nationwide lockdown backed by scientific and transparent granular data. The three operational criteria (the number of infections; the capacity of ICU beds; and the percentage of vaccination rate) to determine the staged reopening of economic and social sectors should NOT be based on a nationwide basis, but based on the developments in individual state/region/district. States that have met three operational criteria should be allowed to reopen their sectors, subject to stricter SOP.
5. Continue to implement a multi-pronged strategy of accelerating vaccination, test-trace-isolate and health preventive measures. The vaccination program and diagnostic testing in the workplaces must be expedited, and also be prioritized in high cases states/areas/zones, with emphasis given to the manufacturing, export-oriented and services industries.
6. The Government must continue to mobilise the resources of private healthcare services to speed up the vaccination as well as to expedite the approval process of allowing private sector’s sourcing of vaccines.
7. Making use of vaccination pass (two doses) as the basis for adjusting social distancing measures as well as inter-state travel.