Food & Beverage Impact: Monitoring Update – Malaysia (24 APRIL 2020)
May 4, 2020 | MEASURES, MALAYSIA
Updates on the third phase of Movement Control Order (MCO) in Malaysia. The MCO has been extended.
- On 23 April, the Prime Minister announced that the MCO will be extended until 12 May 2020. For businesses which had received approval to operate for the previous MCO phases, the businesses can continue to operate in the extended MCO.
- On 17 April, the Ministry of International Trade and Industry (MITI) has issued the Frequently Asked Questions (FAQ) No. 4 on the General Question on Application Process and Business Operations for the MCO in Malaysia. For employees who are approved to work during MCO, are required to perform COVID-19 screening at Social Security Organisation (SOCSO) panel clinics, where the cost will be covered by SOCSO. It also highlighted that the companies do not need to stop operating while screening is performed for the employees in accordance with the guidelines which will be published by SOCSO.
- The waiver of port storage and removal charges will be continued from 16 April to 23 April, 2020 on case by case basis upon application to the cargoes of non-essential goods at both Northport and Westports.
IMPACT ON FOOD SUPPLY CHAIN
- On 20 April, the FMM (Federation of Malaysian Manufacturers) has submitted a letter to highlight difficulties faced by the manufacturers in MCO phase 3. The new restriction in MCO phase 3 has limited manufacturers’ operation hours from 8am to 8pm. For those who wish to extend operational hours, they shall obtain approval from the authority. However, there is a confusion on which authority ultimately provides the approval for 24-hour operations. On this, the FMM is seeking clarifications from the local authority.
- In addition, it is noted that a Cabinet Committee on Food Security chaired by the Prime Minister will be set up to formulate National Food Security Policy for improving Malaysia’s food security.
- FIA has written to several Malaysian Government Ministers including Dato’Seri Mohamed Azmin Ali and Dato’Sri Ismail Sabri. Currently, FIA is awaiting to finalise dates and times for a telephone call with the Secretary General of MITI and Dato’Sri Ismail Sabri, which are both likely to be next week, to advocate and promote the importance of food security and uninterrupted supply during this critical period.