In a statement today, the Malaysian Automotive Association (MAA) appealed to the Government to let them operate at certain capacity and with strict standard operating procedures (SOPs).
The MAA also pointed out production and distribution of automotive products (i.e., motor vehicles, components & parts), and sales of vehicles had halted since June due to the enhanced movement control order (EMCO), it added.
The two states of Selangor and Kuala Lumpur or Klang Valley, accounted for close to 50% of Malaysia's total industry volume (TIV) per annum.
The MAA also pointed out many of the key automotive companies for both production of vehicles and components are in the Klang Valley. Some MAA members also have their sole and or central distribution centre (for vehicles and spare parts) located there.
"MAA also hopes the government will allow factories and distribution centres for vehicles and spare parts, and new vehicles showrooms to operate in Phase 1 & 2 of the National Recovery Plan (NRP).
"In addition, to reduce congestion at ports, MAA is proposing to allow a window of two to three days per week for receiving and storing cargoes for the automotive sector similar to what was practiced during MCO 1.0 last year," it said.
MAA president Datuk Aishah Ahmad said the whole supply chain in the automotive sector has been seriously affected particularly by the complete shutdown of operations in these two states.
"Feedback received from many of our members indicated that business operations even in non-EMCO states are hampered due to disruptions in the supply chain," she said.
During the EMCO stage, not a single business activity from the automotive sector is allowed to operate.
For states under Phase 1 and Phase 2 of the NRP, the vehicle showroom and distributions centres are still not allowed to operate despite the opening up of most of the other economic sectors and as a result, the recovery efforts by the government will be negated.
"The consequences arising from stoppages of the automotive factories, workshops, and distribution centres (for vehicles and spare parts) in EMCO states/localities like Selangor and Kuala Lumpur are indeed very serious," it said, pointing out to the far reaching implications to the entire automotive ecosystem nationwide.
While automotive companies may suffer from loss of revenue, profitability, export markets and closure of businesses, their employees face pay cut, loss of income (particularly for sales personnel) and even retrenchment in certain cases.
"The government will also lose in terms of lower revenue collected from excise duties, import duties, sales taxes and road taxes for motor vehicles," it said.
The MAA pointed out the closures of automotive workshops and parts centres in EMCO states/localities such as Selangor and Kuala Lumpur will not only cause inconvenience to all consumers at large but may also endanger those who continue to use defective vehicles on the road. Failure to repair faulty parts in such vehicles can pose a serious risk to all road users.
"These include vehicles which may be belonging to frontliners such as police, Ministry of Health, etc. that may encounter damages or breakdown in the course of doing their work.
"With factories and distribution centres (for vehicles and parts) in EMCO states/localities unable to operate, this will disrupt the supply chain to business operations in states/areas under Phase 1 and 2 of the NRP," it said.
