Recovery Could Take Up To 2 Years Says Fmm


Businesses are affected by supply shortages and shipping delays, says FMM.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 president Soh Thian Lai said supply chains continue to be impacted with delays in deliveries from suppliers and with shippers experiencing increase in logistics 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 today
FMM president Soh Thian Lai.The federation concluded that the quantum of contraction of the economy in the second quarter, as announced by Bank Negara Malaysia on Friday, affirmed the 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 and 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. - FMT

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