Car workshops, factories (even hair salons) now allowed to open for business, but permit required

By now, you would have learned that the Malaysian government have announced yet another two-week extension to the Covid-19 related Movement Control Order (MCO), extending until 28-April 2020. However, there are some good news. Car workshops and factories can now resume operations, although for the latter, only production of exports are allowed.

The Minister of International Trade and Industry (MITI) Dato’ Seri Azmin Ali made an announcement shortly after Prime Minister Muhyiddin’s announcement on MCO extension.

In his statement to the press, Azmin said that MITI had, after consultation with the National Security Council and Ministry of Health, submitted a proposal to the Cabinet to add several more business sectors to the list of critical services that are exempted from the MCO.

The first on the list is the automotive sector. Now, automotive manufacturing plants can resume operations, but only for production of finished cars for export.

After-sales service centres are also allowed to resume operations.

The caveat is that qualified companies that wish to reopen for business must apply for permission from MITI. The application can be done online at MITI’s website at www.miti.gov.my, starting 9 am Monday 13-April 2020.

Before their applications can be approved, companies must submit their compliance to standard operating procedures in-line with guidelines given by the Ministry of Health.  

So can I send my car for service already?

Not so fast. Before service centres can resume operations, parts need to be restocked. To keep storage cost at minimum, many companies now adopt a 'Just-In-Time' (JIT) supply chain format. 

With factories shut down, where are the parts going to come from? Even after manufacturing plants are re-opened, it takes time for the logistics supply chain (still not fully operational) to resume. 

Then there's also the issue of manpower. Contacting and organizing the many plant workers and technicians is not an easy task. How are they going to proof to the police/army offiers manning the road block that they are allowed to return to work?

By the way, hair salons are also included in the exemption list.