A Plea To The Government: Please Allow Us to Operate Again!

To the government: Do you know that the automotive industry is currently facing a major crisis?

This sector is said to be increasingly affected and some companies may have to even shut their businesses down due to the implementation of the Tightened Movement Control Order (EMCO) in several districts of Selangor and Kuala Lumpur which is still ongoing at this time.

The full closure of operations is already starting to impact the entire automotive ecosystem across the country.

“The whole supply chain in the automotive sector has been seriously affected particularly by the complete shutdown of operations in EMCO states/localities like Selangor and Wilayah Persekutuan Kuala Lumpur. 

"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," said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad.

Commenting further on the matter, the representative did not rule out the possibility that the automotive sector would face huge losses.

The government is also expected to lose revenue from excise duty, import duty, sales tax and motor vehicle road tax.

“Automotive companies may be suffering from loss of revenue, profits, export markets and business closures.

"In fact, employees also face other problems such as salary cuts and loss of income, especially for sales staff, and maybe even retrenchment in some cases," she added.

Therefore, the association has appealed to the government in giving permission to the automotive sector for vehicle workshops and distribution centers, as well as spare parts for passenger and commercial vehicles to operate at an immediate rate.

MAA also hopes that the government will allow the operation of factories and distribution centers for new vehicles, spare parts and vehicle showrooms which are in Phases 1 and 2 of the National Rehabilitation Plan (PPN).

Actions need to be taken as the closure of automotive workshops and component centers in the state of EMCO will also cause big problems to road users in the near future.

“For example, if a consumer is still using a damaged car, it can actually endanger their lives.

"Failure to repair damaged vehicle parts can pose a serious risk for all road users. This includes vehicles that may belong to frontliners such as members of the Police, Ministry of Health and others that may suffer damage while performing their duties, " the president continued.

However, the MAA praised the efforts made by the government in combating the spread of COVID-19 but it is important for the government to acknowledge and allow the automotive sector to operate again before it is completely paralyzed.

The matter was also acknowledged by the UMW Toyota Motor (UMWT) president Ravindran K. when the implementation of EMCO was seen to start leaving a deep impact on the automotive industry.

This was evident when sales of new vehicles across the industry were reported to have plummeted since last June.

Commenting on the situation, he admitted that the automaker still has an encouraging collection of orders for various models.

"We just hope that the government relaxes the movement ban to allow the automotive sector to operate in limited capacity and safely," he said.

Meanwhile, UMW Toyota Motor deputy chairman Akio Takeyama described that although the government had drafted the PPN in four phases, the current situation does not allow for a seamless recovery planning.

In fact, he mentioned that the export business would also be affected as the brand’s subsidiaries were involved in exporting large quantities of automotive components. It is part of Toyota’s global supply chain.

“If this situation continues for long, we are concerned that our overseas customers may look for new suppliers as they cannot have their own production delayed due to shortage of parts from Malaysia. This could have an impact on Malaysia’s economy as a whole if export business declines,” said the deputy chairman.

For your information, a number of selected UMW Toyota Motor service centers are still operating as usual but in accordance with the rules set by the authorities.

Vehicle owners can also get assistance in the event of an emergency: 24-hour assistance is also available and can be obtained by calling 1-800-888-247 (Toyota) and 1800-225-3987 (Lexus).

Additionally, customers are advised to contact their preferred service center to make an appointment in advance.