Malaysia car workshops: How bad is business this FMCO?

Since the commencement of a 'full lockdown' (commonly called FMCO) on June-1, businesses and livelihoods have taken a new round of battering. Even the automotive industry isn't spared, with car sales - new or used - slumping. 

What about car workshops? How have they been affected by latest round of lockdown? Sure, they're still allowed to operate, 

What's the situation on ground?

Speaking to a few workshop owners, many are facing a bleak situation. Ray Wong, owner of Ray Car Care remarked that his business has dipped about 70% since FMCO was implemented on 1-June 2021. 

"The first struggle was to get MITI approval to continue operating, since we're categorised under Essential Services. Obviously that was a mad scramble. Even after obtaining approval to operate, business has been very slow." he said. 

"Even when we operate, customers come in and do the minimum. Unless there's a major repair or service job, we are just doing regular oil changes and tyre sevices. We really aren't making much," he added. 

Ray continued, "The flip-flop Government policies have caused us great confusion. Moreover, despite the significant drop in business, I still have to pay my two staff, and overheads. At least, my operating costs are not sky-high, but we don't know how long we can last."

Another workshop owner, Steven Cheah of Deutsche Motor experienced a 60% drop in turnover. He said while he is allowed to operate, his customers are either unwilling to spend or unable to travel to his workshop.

Steven said, "Medium to large scale businesses like ours suffer more, as we have many staff to pay, on top of rental. I have not issued pay cut to my staff nor have I retrenched anyone, as they helped the company grow in good times."

The hope, moving forward

Ray says he can only hope that the Government can have clear guidelines as to how to get out of this EMCO now. "Please be decisive, get the numbers down with proper strategy, vaccinate as many people. Every day we spend in lockdown, more businesses will run aground," he added.

Ray continued, "The problem is that right now, even after a month of full lockdown, cases are on the rise, through no fault of the people that have actually complied to SOPs. It doesn't make sense. For now, I can still hold on. Who knows for how long?"

Steven hopes the government will help SMEs and the middle-class, not just the public sector and hardcore poor. "The aids are mostly given to the B40 category. What about the middle-class M40 category? Do we not contribute to the economy as well?" he asked.

He continued, "Monitor landlords who've taken moratoriums but do not give rental discounts to tenants. In times like this, we should be helping one another."

Steven, like Ray, has also cautioned that the economy of the car workshop industry will sink to deeper depths if the current situation continues.

"Already, many businesses have shuttered. We are trying our best to stay afloat, but how long can we operate on a 60% loss? My staff have mouths to feed, as have I," he said. 

Conclusion

It goes without saying that the Covid-19 pandemic has hit many businesses and enterprises real hard. As you can see, even car workshops are affected, despite being able to operate as essential services.

Regardless, in the latest round of EMCO, stay safe, observe SOPs and don't go out if you don't need to. Livelihoods are at stake here. Let's hope that things get better soon, for car workshops and also the economy as a whole.