Sigh Of Relief For The Malaysian Automotive Association (MAA) As Operations Reconvened

Malaysian Automotive Association (MAA) rejoices in the government’s decision for the reopening of selected economic activities in states under phase one of the National Recovery Plan (PPN).

Malaysian Automotive Association’s (MAA) president Datuk Aishah Ahmad said, “We welcomed the announcement for the reopening of the sale and production of motor vehicles in states which are currently under Phase 1.”

The MAA extends their heartfelt thanks especially to the Ministry of International Trade and Industry (MITI) for their influence in making this decision a reality.

11 economic sectors are allowed to reopen and among them are the sales and production of motor vehicles, which had suffered huge losses when all operations were halted since June 1, 2021.

“It was a huge sigh of relief when the government finally allowed our sector to reconvene all operations,” she added.

Said shutdown affected not only the automotive companies but also had wider impacts on the entire automotive ecosystem nationwide.

Based on MAA’s latest statistics, the sales and production of motor vehicles for June and July 2021 amounted to only 1,921 units and 7,086 units and, 276 units and 2,775 units respectively.

Besides that, the MAA also stated that the domestic sales of motor vehicles had suffered losses over RM 14 billion in the span of those two months.

MAA members have 1,300 dealers located throughout the country and they were the most affected. Mainly the smaller ones, which rely solely on incomes made from the sales of new vehicles.

Majority faced severe cash flow problems and had difficulties in retaining their employees especially the sales advisors.

“Our members had also lost much in terms of revenue from exports of vehicles and components, and sales of spare parts locally. All in all, these losses had been very substantial and unprecedented,” commented MAA’s president.

However, she further acknowledged that sales and production of motor vehicles for the last two and a half months had also been severely affected by the implementation of movement restrictions.

Naza Automotive Group is also in line with MAA, stating that the entire supply chain of the automotive sector is affected due to the full movement restrictions, mainly in Selangor and Kuala Lumpur.

“Despite this latest announcement, the Naza Group welcomed the government’s decision as most of the major automotive companies are located in the two states. Prolonged business and supply chain disruptions will only adversely affect the industry as the local automotive industry is heavily dependent on the domestic market,” remarked Naza Automotive Group’s chief executive officer Datuk Nik Hamdan Nik Hassan.

As aforesaid the 11 economic activities under the trade and distribution sector in the phase one states that were permitted to reopen was announced by Tan Sri Muhyiddin Yassin yesterday.

It includes businesses such as car washes, car accessories, car dealerships, electrical and electronics, home appliances, furniture stores, sporting goods, morning market and farmers market, fashion apparel and accessories, jewellers, barbers, saloons and spas.

Meanwhile, Caricarz found that the average operator of car washes and car accessories shops breathed a sigh of relief when they heard the government's decision last Sunday.

The owner of Syed Car Wash & Auto Detailing, Syed Ahmad Zulkarnain Syed Ali, 41, admitted that he was a bit depressed when he had to close his premises two months ago.

“I couldn’t operate my businesses and my employees had to quit because I lost my source of income. This made me a bit depressed. So, I am very happy to hear the announcement," he said.

Conversely, it’s a bittersweet ordeal for car accessories business owner Ia Lian Wah of City Car Station as the announcement helped his party only to some extent to get back on its feet due to being inoperative for too long.

Ia Lian Wah said, “The closure of my premises for months has indeed left a deep impression but it will take time to stabilize again. Also, I’m afraid to accept customers because the situation is not like before. Therefore, I will make sure that only customers who have received two doses of vaccine injections are allowed to enter the premises.”

All in all, in light of the economic sector’s reopening, make sure you get fully vaccinated before visiting the premises listed above. Adhere to the SOPs, keep your distances and mask up at all times. 

Remember, Covid is more than just a virus, it’s a prolific serial killer.