Saturday, May 15

Sabah manufacturers want longer operating hours

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KOTA KINABALU: The Federation of Malaysian Manufacturers (FMM) Sabah is appealing to the State Government to allow essential goods manufacturers in the State to extend the operating hours in line with Ministry of International Trade and Industry’s announcement to impose no restrictions during the MCO4 period for all approved businesses.

FMM Sabah chairman James Ha Haw Yew said that while the operations of essential goods were moving, this restriction coupled with only 50 percent of workforce strength made it impossible for businesses to meet the market demand and survive in the long period.

“Many companies are now on the brink of survival and need urgently revive their businesses in order to avoid having to undertake drastic decisions and measures that would be detrimental impact on the overall economy of the State.

“If the MCO is prolonged, many companies would face financial constraints to sustain, particularly the SMEs. Based on FMM survey on the impact of MCO the small-sized industries estimated to suffer losses of RM100,000 to less than RM300,000, followed by RM500,000 to less than RM1 million.

“Estimated losses comprised mainly salary, loss of sales, stock inventory and possible contractual penalties from suppliers as well as customers. The survey also revealed that regardless of company size, the majority of the manufacturing sector or 71% of respondents can only tolerate at the most four weeks of non-operation.

He noted that essential goods manufacturers in the State have been very supportive and co-operative during the MCO.

Employers granted approval to operate adhere strictly to health and safety conditions imposed by MITI or face possible closure of their factory.

As such, FMM Sabah urged the State government to relax the operating hours condition to help business stay afloat and for the survival of the economy.