Govt to allow car manufacturing plants to open: sources

by RAHIMI YUNUS/ pic by MUHD AMIN NAHARUL

THE government is expected to allow car manufacturers to resume operation under the Movement Control Order (MCO) after pulling the plug on the nation’s key economic sector.

Sources told The Malaysian Reserve (TMR) that the government has agreed to allow carmakers to run their manufacturing and assembly lines as approved by the National Security Council.

The Ministry of International Trade and Industry is expected to announce the latest development very soon.

Previously, when the MCO 2.0 began on Wednesday, automotive manufacturing and after sales services were included in the list of sectors operable during the period.

Car manufacturing plants had operated on Wednesday, before the directive was updated which allowed automotive repairs and maintenance services only.

Manufacturing plants had run one shift on Thursday before they were closed in adhering to the new order.

Industry players urged the government to improve its coordination moving forward to avoid any flip flop.

“The cost of production disruption for automotive sector is about RM160 million a day. It is a very costly, unnecessary event,” one source told TMR.

The source said order backlogs at the moment is estimated at 150,000 units, which is about 25% of the total industry volume.

The government previously has agreed to extend the sales tax exemption for passenger cars to another six months until June 30, 2021.

A source said any closure of automotive plants would defeat the objectives of the tax incentives.

Read our previous report here:

Report: Toyota and Honda shut down Malaysia plants amid lockdown