MALAYSIAN-GERMAN CHAMBER EXPRESSES CONCERN OVER SOP CONFUSION, INCONSISTENT ENFORCEMENT

11 July 2021

KUALA LUMPUR: The Malaysian-German Chamber of Commerce and Industry has expressed concern with regards to the Malaysian Covid-19 Standard Operating Procedures (SOP) and its inconsistent enforcement.

In a letter addressed to Prime Minister Tan Sri Muhyiddin Yassin, the chamber stated that the constant changing of SOPs has led to confusion among its members and on the enforcement level.

The enhanced movement control order (EMCO) effective July 3 in most areas of Selangor and several localities in Kuala Lumpur is not yet reflected in the Ministry of International Trade and Industry (MITI) CIMS 3.0 system.

"However, manufacturing companies depend on MITI exemption letters to operate and allow their staff to safely come to work and return home.

"In one case, an essential classification was revoked overnight without any notification or explanation. In other cases, the police insisted on MITI exemption letters although the companies do not fall under the purview of MITI," the letter explained.

The letter also stated another event: Schattdecor Sdn Bhd (Bestari Jaya) which specialises in surfaces and impregnation has received an official MITI letter which confirms that it can operate as an essential service.

"As advised by the police, the company was only allowed to attend to logistics and maintenance but is not allowed to do warehousing and cannot arrange their deliveries, even though warehousing can be operated with minimal staff. The company is willing to implement additional measures if necessary to re-operate.

"Another example is Weidmuller (Malaysia) Sdn Bhd located in Johor at Senai I-Park which is affected by the newly announced EMCO effective July 9-22. The company just set up its production in Malaysia last year and supplies worldwide. It did not have any Covid-19 cases until today and complies with all SOPs.

"The company is not aware of any clusters in neighbouring companies but it appears that there are problems in the collective accommodation of foreign workers. The company will have to relocate parts of the production to Spain if they cannot meet their client's demands," it said.

The chamber stressed that such relocation will lead to job losses in Malaysia and potentially the closure of the plant and the company hopes for a more targeted approach that does not punish the complete industry.

"Since the MCO has started on June 1, our members are increasingly worried of a collapse of the supply chain if only certain sectors are allowed to operate but the supplying industries cannot do so.

"If certain sectors are allowed to operate, but suppliers of packaging, raw materials, parts and components as well as logistics cannot work or can only operate on very minimal capacity, the supply chain will be disrupted and eventually break down which will have dire effects for Malaysia."

The chamber also mentioned that many of its member companies employ expatriates for selected positions at top-management or expert-level where counter services at Immigration in several states and ESD as well as MDEC are closed since June 1 which means that no pass stickers can be endorsed and a lot of other immigration-related services which require personal visits cannot be performed.

Even before MCO 3.0, there were not enough appointments available at ESD and Immigration, it added.

"In some cases, expatriates employed at member companies are waiting since February 2021 for an appointment to endorse their pass sticker. They are highly worried about raids and fines because they have approval letters but no valid pass stickers in their passports.

"Without the pass sticker in the passport, new expatriates cannot be registered under an employer's payroll, and cannot work legally. Existing expatriates cannot go to the authorities when proof of a valid pass is needed.

"Approval letters for expatriate permits such as Employment Pass (EP) or Residence Pass Talent (RPT) are only valid for six months. It is unclear what will happen if endorsements could not be arranged during this timeframe."

The chamber reiterated its call for the Federal Government to coordinate a targeted approach that allows companies to protect their investments, keep their staff and plan ahead.

"Most importantly, consistent and clear communication is necessary, so that enforcement, publication of SOPs and recovery plans are well aligned.

"We suggest executing strictest controls at manufacturing facilities and related dormitories rather than closing down all facilities and harm the entire economy.

"If companies in certain sectors are allowed to operate, all related industries have to operate as well because otherwise, the supply chain will collapse."

The chamber also urged that the vaccination drive is ramped up and that its members are well prepared to pay for the vaccines and organise the vaccination of its staff.