Malaysia Needs A Covid-19 Act Now To Protect Businesses & Jobs

First time in Malaysian history, various associations come together to urgently appeal to the Malaysia Government to speed up the implementation of COVID-19 Bill/Act (Temporary Measures) to save businesses and jobs, ensuring the livelihood of Malaysians.

On Wednesday 29^th April 2020, a press conference between 4.00PM to 5.00PM will be held through Zoom E-Conferencing and will be broadcast live on Facebook.

Many businesses, especially in the retailing, manufacturing, and servicing industries, have business contractual commitments that once the Movement Control Order (MCO) is over such commitments will be enforced on these businesses and thereon numerous disputes will take place which will badly impact businesses. Thus this bill/act will help protect businesses from collapsing.

Prohibition to take legal action

Appropriate measures need to be spelled out in the proposed Covid-19 Bill/Act to certain contracts that prohibit certain legal actions to be taken between counterparties and/or their guarantors if the inability of the counterparties to perform such contracts is to a material extent caused by COVID-19.

This includes not only leases (rent) but it also applies to the supply of constructions materials, the performance of private corporate bonds, the performance of the provision of goods and services for events, the performance of goods and services related to tourism, the performance of private hire purchase related to the factoring service provider and repossession of goods used for the purpose of trade and business.

Sharing of financial burden

On the sharing of financial burden, business owners would implore that the rentals be based on Gross Turnover (GTO) sharing for mall and shop rentals during these challenging times until normalcy is in place.

If this is not favourable, Government should consider 80% tax rebate for rental reductions to landlords. The rental reductions would help ensuring the business sustainability for all involved.

Standard of Operating Procedures (SOPs)

Allow departmental stores and restaurants to operate under strict SOPs mirroring Hong Kong methodology of no more than 4 persons on a table and not more than certain number of guests in the restaurant.

Wage subsidy

The current terms and conditions that limit to 200 employees per company to claim wage subsidy should be removed by SOCSO because all employees regardless of sector pay EIS.

Furthermore, to qualify for the wage subsidy, we appeal to the Government to remove the conditions attached to the mutual reduction (i.e. pay-cut) of wages between employers and employees to sustain business survival in the private sector.

Private sector

Employers must be given the rights to manage its workforce and reign in wage reduction, as the employers see fit. Ultimately, it is the employers who are in in charge of the employee wage welfare.

The next 6 to 12-month business will certainly drop due to adverse market conditions hence no businesses can guarantee employment and full wage. Adjustments due to unforeseen circumstances will need to be made based on market conditions.

Urgent action for approval on 18 May 2020. The government should implement this Bill/Act without any delay to protect businesses when Parliament convenes on 18 May 2020.

The COVID-19 Bill/Act (Temporary Measures) covers these pertinent points:

The relief imposed by law will save jobs, businesses, companies and investments which will then continue to multiply the Economy.
Contracting parties will not waste Time and Resources fighting in court over application of doctrine of frustration or meaning of Force majeure Clauses. Hence there will be legal certainty resulting in commercial certainty.
Preserve legal rights such as right of legal action by stopping limitation.

This press conference is jointly held by: