MCO 2.0: MITI disallows car factories from operating

MCO 2.0: MITI disallows car factories from operating

The government is continuing to make drastic changes to the second movement control order, despite this being the first day of the renewed stay-at-home ruling. The Ministry of International Trade and Industry (MITI) today released an updated list of economic sectors allowed to remain open, specifically mentioning that automotive manufacturing and assembly plants have been disallowed.

That’s quite a U-turn from 24 hours ago, during which the ministry gave the green light to these facilities alongside workshops and service centres (which are still allowed to operate, together with showrooms). We should point out, however, that the order is only in effect in six states – Selangor, Johor, Penang, Melaka, Sabah and the federal territories of Kuala Lumpur, Putrajaya and Labuan – so factories in other areas can function as usual.

For example, Proton’s Shah Alam plant will be forced to close, but its Tanjung Malim facility in Perak can continue to operate – as can the Hicom plant in Pekan, Pahang, the Inokom plant in Kulim, Kedah, and the Naza plant in Gurun, Kedah. Honda’s Pegoh plant in Melaka will also be closed as part of the order.

Of course, these factories’ operations are subject to the availability of parts, as vendors within the MCO areas will also be closed during the two weeks from today to January 26.

The full movement control order (with some exceptions) was reinstated in Selangor, Johor, Penang, Melaka, Sabah and the federal territories of Kuala Lumpur, Putrajaya and Labuan, after a sharp increase in coronavirus cases. It bans interstate and inter-district travel in these areas and places significant restrictions on work and social activities. As usual, we implore everyone to follow the government’s SOPs and stay home.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Raja Kamarul on Jan 13, 2021 at 12:21 pm

    MITI is really messed up lah.

    Like or Dislike: Thumb up 29 Thumb down 8
    • Cant help. Miti got adviced lambat that car plant might be huge risk for infection.

      Like or Dislike: Thumb up 16 Thumb down 1
      • Lee Meng on Jan 14, 2021 at 11:12 pm

        Deyy.Got new news too.Northern car plant oso infected in plant.Try chase their insider.Must be good still can run leyy.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Nasib baik P1 Tg Malim not affected, still can continue full steam production for X50. Cukurrr…

    Like or Dislike: Thumb up 10 Thumb down 4
    • (Dude) on Jan 13, 2021 at 6:19 pm

      Ya, but the suppliers are probably from MCO states, so no production will commence.
      Hahahahah…

      Like or Dislike: Thumb up 3 Thumb down 0
      • Dredd on Jan 14, 2021 at 11:03 am

        Car parts manufacturing is still allowed during MCO. No problem for them to continue. Dredd agrees.

        Like or Dislike: Thumb up 3 Thumb down 0
  • longjaafar on Jan 13, 2021 at 1:01 pm

    How to think globally, where supply chains are interconnected, when they cannot even get parts from within the country itself?

    Like or Dislike: Thumb up 3 Thumb down 5
    • Celup King on Jan 13, 2021 at 3:53 pm

      Global supply chain are even more screwed up than here
      https://paultan.org/2021/01/11/toyota-honda-nissan-ford-and-fca-impacted-by-shortage-in-semiconductor-chips-to-cut-production/

      Like or Dislike: Thumb up 8 Thumb down 0
    • niqkers on Jan 15, 2021 at 7:51 am

      Global mung.. Mai kerja kilang baru sembang.
      Mostly semikon parts shortage sekarang dari luar

      Like or Dislike: Thumb up 3 Thumb down 0
  • May I know where to see the updated list? I couldn’t find any official announcement on this.

    Like or Dislike: Thumb up 0 Thumb down 1
  • Leon Yap on Jan 13, 2021 at 2:33 pm

    I bought a car and got all documents signed on january 5th or 6th. SO does that mean my car will be delayed?? Any ideas?

    Like or Dislike: Thumb up 0 Thumb down 5
  • Aero (Member) on Jan 13, 2021 at 3:09 pm

    Most of our 600+ automotive vendors are based in the Klang Valley area. The average car has some 30,000 parts. Even if ONE part is missing, production must stop temporarily.

    Car companies and their plants rely on vendors to build and supply certain components (eg. dashboard, lights, seats). The car companies have overseas suppliers too, who might have their own supply problems. The supply quantity and delivery schedules are planned months ahead.

    The car companies need time to build up their inventory and stock. If the government keeps flip-flopping, the ones who will suffer most are the end customers. The waiting list will only get longer and longer at this rate.

    Like or Dislike: Thumb up 9 Thumb down 2
  • Ashhhhhhh on Jan 13, 2021 at 3:13 pm

    Dah boleh operate pulak….another u-turn…wakakak

    Like or Dislike: Thumb up 3 Thumb down 5
  • The company should follow the SOP thoroughly……especially among the staff to avoid the pandemic from spreading badly. Serious precautions should be addressed well. #kitajagakita

    Like or Dislike: Thumb up 3 Thumb down 1
  • Line worker on Jan 13, 2021 at 5:31 pm

    Source:
    https://www.miti.gov.my/redir/pkp/media.html
    look at the footnote

    Anyway, this is a huge impact to the whole automotive industry due to the government’s indecisive last minute decisions. 1/2 month income gone for all the supply chain of tier 2 onwards but salary still have to be paid out. Then after 26 Jan, the whole industry have to play catching up with non-stop OT and SUN (triple pay). Did the government consider this for the industry. Of course not. They are concerned about losing their seats more than anything.

    Malaysia’s Education system is also paralyzed but no one is thinking a long term plan. Education Minister please wake up and plan ahead, otherwise another year is going to fly by.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Many P1 or P2 vendors from Selangor. Just 1 missing piece also close down whole factory. But it is true, assembly lines got thousand of workers. High chances of infections.

    Like or Dislike: Thumb up 1 Thumb down 1
  • managing director on Jan 14, 2021 at 8:18 am

    actually for those company which is not obviously in automotive example 1 assembly company in bangi cheat when they register with MITI, MITI not going to check in details those product going to where, lol use ur brain if dont want to totally shutdown ur plant

    Like or Dislike: Thumb up 1 Thumb down 0
  • Automotive Supplier on Jan 14, 2021 at 10:03 am

    I don’t see any announcement in MITI webpage. Fake news?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Hafriz Shah (Member) on Jan 14, 2021 at 10:34 am

      There’s a specific mention of the exclusion of automotive factories in the list here: https://www.miti.gov.my/miti/resources/Media%20Release/SIARAN%20MEDIA_PKP%2015%20JANUARI%202021_Final_.pdf

      Like or Dislike: Thumb up 2 Thumb down 2
  • AFMGT Youtube on Jan 14, 2021 at 11:41 am

    Adoilah, saham MBMR mesti affected ni. Haha. Supply chain for car parts mesti affected even though some car plant allowed to open. Kilang Furniture boleh operate?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Brian on Jan 14, 2021 at 6:52 pm

      MITI listing is very specific on what factories can be operating. If yours is not in the list, then….

      Like or Dislike: Thumb up 1 Thumb down 0
 

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