MAA: Allow automotive sector to resume operations to prevent greater economic loss

The Malaysian Automotive Association (MAA) is appealing to the government to allow automotive sector activities to operate following strict standard operating procedures (SOPs) in states under the Enhanced Movement Control Order (EMCO) Phase One and Two of the National Recovery Plan (NRP).

In a statement today, MAA president, Datuk Aishah Ahmad said that the whole supply chain in the automotive sector has been adversely affected particularly by the total shutdown of operations in Selangor and Kuala Lumpur, both of which have been placed under the EMCO.

The association said that the stoppages of production and distribution of automotive products since 1-June 2021 would have far-reaching consequences to the entire automotive ecosystem nationwide. They add that the longer the automotive factories, workshops, and distribution centres stop operating, the greater the damages inflicted on the industry and the country in general.

"Feedback received from many of our members indicated that business operations even in non-EMCO states are hampered due to disruptions in the supply chain," Aishah said. 

"Therefore, MAA would like to appeal to the government to allow automotive sector activities (workshops and distribution centres for passenger and commercial vehicles and spare parts) to operate with immediate effect albeit at certain capacity and with strict SOPs (standard operating procedures) in place in states under EMCO, Phase 1 of NRP and Phase 2 of NRP."

MAA also said that Selangor and Kuala Lumpur accounted for close to 50% of Malaysia's total industry volume (TIV) annually, with many key automotive companies for both vehicle and component production are located within these two states.

Besides that, some MAA members also have their central distribution centre (for vehicles and spare parts) located within these two states.

MAA is also proposing to allow a window of two to three days per week for receiving and storing cargoes for the automotive sector similar to what was practised during MCO (Movement Control Order) 1.0 last year.

To recap, the EMCO is imposed on 34 mukims or enclaves in Selangore, besides 14 localities in Kuala Lumpur from 3-July 2021 until 16-July 2021.