By now, Malaysians would know that the Movement Control Order (MCO) will not expire on April 14 but continue till April 28, 2020. The reason is to give more time for the effects of social distancing and restricted movements to slow down the spread of the COVID-19 coronavirus and ‘flatten the curve’. The latter refers to a graph which projects the number of infected cases and the ‘flatten to curve’ will keep the number lower so that our medical facilities can cope.
In Europe and America, the number of cases has gotten so high that hospitals cannot cope and lives are being lost because of insufficient life-saving equipment and even beds. We do not want that to happen in Malaysia and it seems that the MCO has worked to some extent although the Health Ministry’s Director-General says that more time is needed.
Understanding that the restrictions, which have included closure of most businesses, has seriously affected the economy and put increasing pressure on workers, the government will permit certain sectors to operate in what we hope is the final phase of the MCO. The sectors involve industries such as machinery and equipment, social health services, construction, aerospace, optical shops, laundry shops and barber shops. Earlier, hardware shops had already been allowed to operate on certain days and within certain hours.
Some sectors of the auto industry are also allowed to operate in the coming weeks. These are plants and companies which are involved in the assembly of vehicles for exports (production for the domestic market is not allowed). This would mean brands such as BMW, Mazda, Perodua, Peugeot, Proton and Volvo, along with the companies which provide parts to them.
It’s good news but might not be as helpful to the companies as it seems. There are still parts and systems that are imported from not just other ASEAN countries but also Japan and Europe and with many production facilities shut down, it may not be possible to finish assembly of the vehicles. Just one part not being available means the vehicle cannot be completed although there might be a small stock of the parts.
However, most automobile factories today operate on a just-in-time system where a minimum stock is kept to reduce storage space requirements. Under normal circumstances, the supply chain from overseas is constant and that’s fine. Now with many sources shut down and also local restricted movements for which exemption will be needed to get the parts out from the ports, it will be a challenge for the assemblers.
Then there’s the matter of whether importers in other countries want new vehicles. Vehicles from Malaysia are exported mainly to ASEAN countries as the ASEAN Free Trade Area (AFTA) agreement allows them to be imported duty-free. But Thailand, Indonesia, Brunei and the Philippines are all under similar crisis conditions and sales would be down.
Service centres allowed to open
When the MCO was first activated, all service centres had to close. The only allowance was for emergency services to tow disabled vehicles or change batteries, but no work was to be done at the premises. If a car was towed there, it would remain there until the MCO was over before any repair work could start.
Now, it has been announced that ‘aftersales activities’ will be allowed to resume from next week (provided approval is given to the company by MITI). This is taken to mean that the service centres can operate and receive cars for servicing. So far, it is not known if the companies will open their service centres and we’ll only know after Monday when applications are submitted.
The manager at a company selling a leading brand said that there is also concern about their own people getting infected and whether it is worth the risk for now. Furthermore, with the 10-km range imposed under the MCO, there may be vehicle owners who may be beyond range to reach the authorized service centres.
The personnel at roadblocks have been instructed to be stricter and many people have been charged with disobeying the regulations, which means a RM1,000 fine or 6 months in jail (higher penalties might be considered).
Basically, for private motorists, besides the 10-km range from your home that you can travel to buy essential items or for emergencies, only one person can be inside the vehicle. You may be required to show proof of residence which, if not the same as what is on your MyKad, can be shown with TNB or water bill for your current place of residence. You are not allowed to wander around after making your purchases and should return straight home.
As everyone from the Prime Minister to the medical personnel at hospitals has appealed: STAY AT HOME. This is how you can do your part in the War on COVID-19. It may be frustrating and for many, a worrying time as it creates uncertainties about the future but we need to make the sacrifices so our lives can return to some normalcy (although things will be different for sure).
Keyword: Limited activities in auto industry permitted in final (hopefully) phase of MCO