COVID-19 : Can we afford to close our factories?

By ZAIDI ISHAM ISMAIL
editor@dagangnews.com

FOR the past several weeks, the rakyat have been clamouring for the temporary closure of the factories. Factories have been identified as the epicentre for the COVID-19 spread in the country, of which half of the cases are in Selangor.

On Tuesday, we saw the longest queue at Stadium Melawati as some 4,000 Selangorians lined up to get tested.

There is also a viral WhatsApp video of netizens lambasting Datuk Seri Mohamed Azmin Ali for not shutting down the factories until the pandemic situation improves. Azmin is Minister of International Trade and Industry Ministry which oversees the operations of all most manufacturers in Malaysia.

The country's health sector is at a breaking point chalking an all time high of 11,079 cases on Tuesday.

But can the country afford to close its factories?

It does not take a genius to figure out that if the factories are closed, the country will not be earning an income as 99% of the products are exported. These products include air conditioners, LED televisions, rubber gloves and others. These manufacturers also employ thousands of foreign workers.

A SME Corp official said it is time for Azmin to close all the factories say for 2 weeks and really snuff out the virus.

"It's been 2, 3 months of lockdown but the infection numbers are still climbing. The authorities are locking down the wrong target," he told DagangNews.com.

"The government is burdening 90% of the rakyat not infected with the virus while another 10 percent infested with the virus are allowed to operate at factories," said the official.

The government is possibly barking up the wrong tree in dealing with the virus and using the wrong approach.

The SME Corp official said local SMEs are already domain and most are not operating.

"It is the factories which are the culprits as their production lines are still rolling."

Perhaps the official is right. Closing the factories for 14 days will not dent their deep pockets as most of the owners are already well to do.

However, on the flipside AIMST University vice chancellor Datuk Dr John Antony Xavier said factory closures will result in loss of business because export orders can’t be honoured. 

He added there will also be a loss of productivity as there is no production. 

"And without revenue from sales, employees would have to be retrenched. 

With a loss of income, employees would have no purchasing power and consumption will be affected.

"By closing the factories, Malaysia’s poor consumption will compromise 60 percent of the gross domestic production," Xavier told DagangNews.com.

Prime Minister Tan Sri Muhyiddin Yassin and his new deputy Datuk Seri Ismail Sabri will have their work cut out for them.

They must now find the delicate balance in saving lives while sustaining livelihoods at the same time.

Maybe they can start by recalling MITI minister Azmin home from overseas to find a common ground to deal with the "factory" quagmire and appease the rakyat at the same time. - DagangNews.com

ZAIDI ISHAM ISMAIL is a seasoned journalist and now returns to Dagang News as a special writer.