On 27 March, the YAB Prime Minister Tan Sri Dato’ Haji Muhyiddin Yassin announced the Prihatin Rakyat Economic Stimulus Package 2020 (PRIHATIN).
- The Stimulus Package aims to support people’s welfare, businesses, and country economy which are impacted by COVID-19.
- The Federation of Malaysian Manufacturers (FMM) had proposed a few measures to be considered for the Economic Stimulus Package, including to allow critical essential goods manufacturers to operate on 100% capacity including their entire supply chain to meet the needs of Malaysian during the extended Movement of Control (MCO) period.
IMPACT ON FOOD SUPPLY CHAIN
- In order to ensure food supply remain sufficient, the Government will allocate RM1 billion for Food Security Fund. The Government will continue to channel various assistance to farmer & fishermen to increase domestic production.
- The Government will also provide RM100 million for the development of infrastructure for food storage and distribution, as well as crop integration programme.
- A series of special funds between RM100,000 and RM 200,000 to develop short-term agrofood projects for ensuring sufficient food supply.
- A special committee group led by International Trade and Industry Minister, Datuk Seri Mohamed Azmin Ali, will be set up to ensure adequate supply of foodstuff during the ongoing MCO period.
- On 30 March, FMM has requested for the relaxation of conditions for several initiatives introduced in the PRIHATIN.
- Local company can start to apply for the schemes under the Human Resource related Initiatives from the Prihatin Rakyat Economic Stimulus Package 2020.
On 30 March, tighter measures were announced for the second phase of Movement Control Order (MCO) in Malaysia.
- Movement of essential business is still allowed with tighter restrictions for operation hours.
IMPACT ON FOOD SUPPLY CHAIN
- For essential businesses premises, restaurant and food outlets (takeaway), and food/goods delivery services, these businesses are only allowed to operate from 0800am to 0800pm.
- On 2 April, the Federation of Malaysian Manufacturers (FMM) has submitted a letter to address challenges faced by businesses during the extended MCO in particular to the movement of employees in approved essential goods manufacturing, permits exports and imports of all goods.
- Currently, the food industry is facing challenges in maintaining the production due to the strict requirements on the reduction of manpower in manufacturing plant and disallowing movement beyond the tightened MCO hours. The industry shall work closely with local authority to keep the production maintained to support the adequate food supply.
- FIA is working closely with the local industry association, the FMM MAFMAG, to address industry’s concerns for ensuring adequate food supply during the MCO period.