Malaysia: pandemic impacts and eased restrictions

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ITTO/Fordaq
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A recently released report details the upheavals experienced by the timber industry during the Movement Control Order (MCO) first implemented on March 18. Many companies faced challenges. To support industries the government introduced the so-called “Prihatin Stimulus Package” worth over RM260 billion. Consultations among the various ministries, government agencies and the private sectors resulted in the release of regulations and Standard Operating Procedures (SOPs) for businesses that were given approval to operate during the MCO. As many industries were contemplating a shutdown, the timber sector received special approval from the Ministry of Health to operate under strict adherence to the SOPs during the MCO. More than 500 timber-based companies were granted approvals of which over 70% were furniture and moulding manufacturers.

The Malaysian Timber Council (MTC), together with many public and private sector organisations, played a key role in facilitating the smooth operation of the timber sector by analysing and channeling feedback from the industry players to the government through consultation sessions. The MTC conducted an industry-wide survey which highlighted concerns over slowing global and domestic demand, cash flow problems, problems in fulfilling orders and paying workers.

One of the main problems during the MCO was disruption of timber raw materials supply chains which was swiftly resolved when the government granted permission for the transportation of logs from the landing sites to the factories. Since then, timber-based manufacturers were assured of regular supply of raw materials for their operations.

The timber sector has been operating throughout the MCO and CMCO with almost all manufacturers having resumed operations and more than 60% are now exporting. These timber-based manufacturers are also revisiting their business plans and actively relooking at digitalisation and automation options to further fortify their operations.

While Malaysia has transitioned into a ‘Recovery Movement Control Order’ phase and many restrictions have been removed or eased partially, international travel is still restricted. The creation of a ‘travel bubble’ for international business travellers is in discussion. Timber trade events organiser, Informa Markets, suggested to include South Korea, Taiwan P.o.C, Japan, China, Thailand, Singapore, Australia, Vietnam and Hong Kong which are all a an even level concerning daily new cases.

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