Automakers plead to resume ops under EMCO

by SHAFIQQUL ALIFF / pic by TMR FILE

MALAYSIAN automakers are appealing to the government to allow workshops and distribution centres to operate immediately during the Enhanced Movement Control Order (EMCO), as well as Phases 1 and 2 of the National Recovery Plan.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad (picture) stated that the whole supply chain in the automotive sector has been seriously affected by the complete shutdown in EMCO states like Selangor and Kuala Lumpur (KL).

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

MAA appealed for the greenlight for workshops and distribution centres for passenger and commercial vehicles and spare parts to resume operations with immediate effect albeit at certain capacity and with strict standard operating procedures.

The association noted that Selangor and KL accounted for close to 50% Malaysia’s total industry volume per annum.

In addition, some MAA members also have their sole or central distribution centre for vehicles and spare parts in the two states.

MAA proposed a window of two to three days per week for receiving and storing cargoes for the automotive sector as was similarly practised during MCO 1.0 last year to reduce congestion at ports.

The group added that factories and distribution centre closures will disrupt the supply chain to business operations and negate recovery efforts by the government as a result.

It noted that the government would collect lower revenue from excise duties, import duties, sales taxes and road taxes for a motor vehicle if the sector continues to be shut down.

MAA said closure of automotive workshops and part centres in EMCO states and localities pose serious risk to road users when defective vehicles remain on the road.

MAA expects minimal sales in June except for carry forward May 2021 registrations not invoiced due to operational disruptions, while the global chip shortages remain a problem.