KUALA LUMPUR: Business recovery may take anything between four months to two years depending on the sectors and impact that Covid-19 has had on the business, according to the Federation of Malaysian Manufacturers (FMM).
Its president Tan Sri Soh Thian Lai said supply chains continue to be impacted with delays in deliveries from suppliers and with shippers experiencing increase in logistic and shipping costs, increase in raw material prices as well as shortages in supply.
“The manufacturing sector continues to take on a very pessimistic stance in their projections on the prospects of their businesses for the rest of 2020.
“For most companies, overall business activities including sales both domestic and exports for the next six months are still expected to be low as they continue with their business revival and recovery,” he said in a statement yesterday.
The federation concluded that the quantum of contraction of the economy in the second quarter, as announced by the Bank Negara Malaysia on Friday, affirmed severity of the impact of the Covid-19 pandemic on businesses.
It also anticipates that when the automatic bank loan moratorium period and the six-month wage subsidy period end in September 2020, most companies, businesses will be faced with a double cost whammy that could severely impact their business revival initiatives.
“To ensure that the economy can quickly recover and businesses continue to improve their revenue and sustain their workforce, we call on the government to continue supporting industries with more initiatives and assistance.
“This, especially the extension of moratorium on banking facilities and timely execution of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Bill 2020,” added Soh. – Bernama
