Thursday , March 23 2023

The second strict blockade could cause the economy to collapse, warns EuroCham Malaysia


KUALA LUMPUR: The EU-Malaysia Chamber of Commerce and Industry (EuroCham Malaysia) has warned that a second blockade similar to the one imposed in March and April last year could lead to a potential collapse of Malaysia’s economy, as many companies would close.

Executive Director Sven Schneider said the states most affected by Covid-19 are also the nation’s commercial and industrial centers, which would multiply the impact of any strict blockade to be implemented.

“We hope that the government will look into the matter very carefully (amid growing concern about a potential second strict deadlock),” he said in a statement today.

He said that while Eurocham Malaysia supported the government’s decision to respond to the Covid-19 threat to public health by using proven strategies, it was not in favor of a completely restrictive blockade that would probably not balance the economy’s recovery needs. Malaysia.

Schneider said at present that business is still being restructured and recovering from the impact of the first blockade due to the pandemic.

“Among the many challenges most companies faced during the complete shutdown were substantial financial losses and revenue, logistical challenges and supply chain disruptions, as well as reductions, to name a few,” he said.

He said that despite the losses they have faced, many businesses and especially the European business community have learned not only to follow the standard operating procedures (SOPs) set by the government, but also to take stricter internal within the office or factory. to ensure the health and safety of employees.

Schneider said that in view of this positive development, EuroCham Malaysia considered that instead of a complete blockade, a more controlled command of conditioned motion control (CMCO) would be ideal, with an improvement in its SOPs, focusing on on more stringent measures regarding travel and social activities. it would allow companies to continue to rebuild and stimulate the economy again.

“If a second blockade is to be implemented similarly to March / April 2020, it will have serious implications for both the nation and the economy,” he added. -Appointed

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