by SHAFIQQUL ALIFF / pic by MUHD AMIN NAHARUL

NAZA Automotive Group appeals to the government to allow the automotive sector to resume operations as the entire supply chain has been seriously affected due to the complete operational shutdown under the Enhanced Movement Control Order (EMCO).

EMCO is being enforced in states and localities such as Selangor and Kuala Lumpur.

The company’s group CEO Datuk Nik Hamdam Nik Hassan said many of the key automotive companies for producing vehicles and components are located in the two states.

He said prolonged business and supply chain disruption would have dire consequences on the industry, mainly due to the fact that the local automotive industry is highly dependent on the domestic market.

“The continued shutdown of vehicle sales, production and distribution of motor vehicles, components and spare parts, closure of showrooms and distribution centres and complete shutdown of operations would lead to the eventual closure of businesses, especially for the smaller industry players.

“Inevitably, this scenario would bring about lay-offs and probable deep and long-lasting impact to the job market,” he said in a statement today.

Nik Hamdan said the current situation is not only inconvenient for customers, but it may also pose hazards to car owners who might continue using under-serviced vehicles and are unable to repair defective parts when needed.

“Naza is hopeful that the government will pay heed to the industry’s plight and allow the automotive sector activities to operate with immediate effect, subject to compliance of strict standard operating procedures,” Nik Hamdan added.

Malaysian automotive sector saw vehicle sales plunged 96% in June to 1,921 units compared to 47,204 registered in May 2021, mainly due to halted sales operations in many of the states.

The Malaysian Automotive Association has slashed its 2021 total industry volume (TIV) forecast by 12.3% to 500,000 units from 570,000 units earlier due to disruptions caused by the prolonged lockdown.

The 500,000 units projection would translate into a 5.6% lower TIV this year, or 29,434 units, compared to 529,434 units registered last year.