MCO 2.0: MITI allows all car factories to operate again

MCO 2.0: MITI allows all car factories to operate again

From yes, to no, and now yes again. The ministry of international trade and industry (MITI) has reinstated automotive manufacturing to the approved list of services in economic sectors allowed to operate during the second movement control order (MCO), which means assembly plants will be allowed to run again.

Vehicle production and component manufacturing were included in the initial directive issued on January 12, but an update to the document less than 24 hours later saw them being omitted, with a specific footnote mention that automotive assembly and manufacturing activities were no longer included in the permitted list.

Now, in another u-turn, MITI has given the green light for all automotive assembly plants – covering vehicle and component manufacturing – to continue operations, with the activity restored to the essential services list as of today, January 16.

Previously, the ban on activity was applicable only to states in which the MCO is in effect, specifically Selangor, Johor, Penang, Melaka, Sabah and the federal territories of Kuala Lumpur, Putrajaya and Labuan, which meant that Proton’s Shah Alam plant and Honda’s Pegoh plant in Melaka were impacted by the move.

While assembly plants in other states – under a recovery or conditional MCO – such as the Hicom plant in Pekan, Pahang and the Inokom plant in Kulim, Kedah could remain in operation, interruptions to their operations were likely to happen at some point due to supply issues.

This is because their ability to function would be subject to them being able to secure parts, something that would be difficult if component vendors within the MCO areas were closed. Now, it’s business as usual, and the resumption of auto manufacturing will be welcome news to companies looking to clear their order backlog.

MCO 2.0: MITI allows all car factories to operate again

The move follows on the call made on Thursday by the Malaysia Automotive, Robotics and IoT Institute (MARii), which said it supported the move for the automotive sector in the country to resume operations quickly. According to MARii CEO Datuk Madani Sahari, this resumption was crucial given the industry’s major contribution to the national economy.

He said that the sector, which contributed RM13.1 billion through exports in 2019 and employed more than 700,000 people, had continued to perform well last year despite the Covid-19 pandemic, which had resulted in many production interruptions and a scaling back in manufacturing.

Despite all these challenges, exports of parts and components to regional markets had exceeded the RM10 billion mark by the end of October, and Madani said that it was important that the momentum continue, as any lengthy delay would have a significant negative impact on the industry.

What do you think of the move to reinstate automotive manufacturing to the list of services allowed to continue during the MCO? Share your thoughts with us in the comments section.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Tengkiu MARii CEO Datuk Madani Sahari lobbying car factories to reopening … Syabas Datuk, You’re the Man!

    Like or Dislike: Thumb up 13 Thumb down 17
    • Rakyat Malaysia on Jan 17, 2021 at 2:22 am

      So Marii did their job after all. Well done!

      Like or Dislike: Thumb up 1 Thumb down 3
    • YB Albert on Jan 18, 2021 at 1:10 pm

      Why do u need this maidani dude to lobby for car manufacturing to reopen? Why pay him such high salary to lobby?
      Those MKN socalled experts cant forsee the virus rampaging thro clusters? You need optometrists to prescribe special lenses for them to see the ‘kelompok” virus?
      The virus ,by now u should know…loves kelompok/clusters of people who fail to physically distance.
      Tun said Tan Sri Hisham needs more medical experts for joint efforts to control the virus,not lobbyists .
      It’s sad,the virus is allowed to rampage innocent lives,thro mere incompetence .

      Like or Dislike: Thumb up 4 Thumb down 1
  • azrai on Jan 16, 2021 at 1:43 pm

    Flip flop. How about the incoming two days time then. Back to cannot operate?

    Like or Dislike: Thumb up 41 Thumb down 6
    • Dilbert on Jan 16, 2021 at 2:04 pm

      Flip flop govt. Order satu Roti canai bawang, tengkiu Azmin

      Like or Dislike: Thumb up 28 Thumb down 5
    • PEJUANG on Jan 16, 2021 at 3:25 pm

      PN is worse than PH

      Well-loved. Like or Dislike: Thumb up 87 Thumb down 19
      • Susah lah on Jan 16, 2021 at 7:59 pm

        Huge fail to control COVID. Musibah to ekonomi Msia lingkup,

        Like or Dislike: Thumb up 33 Thumb down 5
      • Troll Hunter on Jan 18, 2021 at 8:49 am

        Hahaha!!! In times of trouble, only hate-trolls are on the roll.

        Like or Dislike: Thumb up 8 Thumb down 6
      • Copy Paste on Jan 18, 2021 at 1:07 pm

        Copy paste: “Open you people complain infection go up.
        Closed you people complain no job.
        Lucky you people are no longer in gomen anymore.”

        Like or Dislike: Thumb up 1 Thumb down 2
      • Avenger on Jan 18, 2021 at 1:08 pm

        Sendiri syiok sendiri by upping your own likes. Deswai PH failed.

        Like or Dislike: Thumb up 2 Thumb down 3
    • Rakyat Malaysia on Jan 17, 2021 at 12:34 am

      Open you people complain infection go up.
      Closed you people complain no job.
      Lucky you people are no longer in gomen anymore.

      Like or Dislike: Thumb up 10 Thumb down 3
  • Now I hope Honda Malaysia actually announce something for the City RS. There have been no updates on this ever since they said they will launch on early January last year. Meanwhile our neighbors already gotten both the normal City RS and now the EHEV City RS when we launched it as the “world premier” EHEV RS. All my SA tells me is they are having a meeting about it and I know it’s not her fault cause it’s the higher ups that makes the decisions.

    Like or Dislike: Thumb up 2 Thumb down 25
  • Chow Wei Zhen on Jan 16, 2021 at 2:42 pm

    Anyway, syukur now continuing full steam of toyota production. Toyota all the way

    Like or Dislike: Thumb up 24 Thumb down 10
  • YB Albert on Jan 16, 2021 at 3:33 pm

    What is the difference between a construction site and a car factory?
    They may have the same amount of workers…hundreds.The only difference is most construction sites have more foreigners.
    Proton has reported a small cluster before.Do you want a huge Perodua or Toyota UMW cluster?
    Very soon,all industries or sectors will be operational..it defeats the purpose of the MCO.We will be back to higher covid figures..perhaps 10,000 daily cases.
    Do u need rocket science or a PHD in microbiology to understand the rampaging virus?
    Just shambolic and pathetic,disgusting and outrageous.

    Like or Dislike: Thumb up 32 Thumb down 35
  • Problem is kampung politicians have very little understabding about how our economy works. They have in place too many restrictions that is causing businesses to go elsewhere.

    Like or Dislike: Thumb up 8 Thumb down 6
    • Fordist on Jan 17, 2021 at 11:14 am

      Syukurla musim Covid & darurat nih, dapat bantuan free ayam… orang ramai syukur xputus makanan, tengkiu amat2 mereka yang perihatin sudi menderma .. kipidapp

      Like or Dislike: Thumb up 10 Thumb down 4
  • Yuvan on Jan 16, 2021 at 5:16 pm

    MITI proves its inefficiency once again .. Waste of tax payers money to pay them wage monthly..shame on them for not attracting investor abroad into our country

    Like or Dislike: Thumb up 21 Thumb down 4
  • Sick&Tired on Jan 16, 2021 at 5:41 pm

    Flip flop again! No wonder investors are going to Indonesia instead of Malaysia!

    Like or Dislike: Thumb up 35 Thumb down 4
    • Ghani on Jan 16, 2021 at 8:06 pm

      semalam satu cerita …ini hari lain cerita, aduihh Hantu kom-kom pon larik.

      Like or Dislike: Thumb up 19 Thumb down 2
  • Newme on Jan 16, 2021 at 7:09 pm

    In the meanwhile today 4000 new infection.

    Like or Dislike: Thumb up 27 Thumb down 4
  • Please use your stupid brain to think carefully if you still have brain. Every times just changed a few days after announced. Do you feel shame? How are you going to lead Malaysia?

    Like or Dislike: Thumb up 5 Thumb down 0
  • azrai on Jan 17, 2021 at 7:35 am

    MARii will change their name to PERGi tomorrow.

    Like or Dislike: Thumb up 3 Thumb down 1
  • azrai on Jan 17, 2021 at 7:35 am

    School also cannot on last minit. On tak on..

    Like or Dislike: Thumb up 0 Thumb down 1
  • Vanguard on Jan 17, 2021 at 9:56 am

    There is a joke in the street that says Miti is “Yes, No, Maybe”

    hahaha….enjoy the joke while we all stuck in MCO (again)

    Like or Dislike: Thumb up 4 Thumb down 0
  • Hentz on Jan 17, 2021 at 10:53 am

    Now wonder other SEA countries economy are moving up…whereas…here we seems to think we re better off than them.

    Like or Dislike: Thumb up 5 Thumb down 1
  • Cheah on Jan 17, 2021 at 11:52 am

    Please treat MCO seriously else is unfair to people stay home. If not essential please don’t operate.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Jacky on Jan 18, 2021 at 9:02 am

    Just shows how incompetent this government is … * face palm *

    Like or Dislike: Thumb up 8 Thumb down 2
  • KKLEE on Jan 18, 2021 at 12:48 pm

    Pusing sini pusing sana!! Malaysia boleh.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Everyman on Jan 19, 2021 at 6:55 am

    It’s possible to revive the economy after being badly hit by the pandemic, but it’s not possible to revive those who died because of this virus…

    Like or Dislike: Thumb up 1 Thumb down 0
  • devil on Jan 19, 2021 at 4:43 pm

    should be more strictly not flip flop SOP,
    myb can control like only car automotive is allow to functional..try to control which is important to open which is not

    Like or Dislike: Thumb up 0 Thumb down 0
  • devil on Jan 22, 2021 at 11:30 pm

    should allow important automotive factory only operated…examples only allow ( Car ) automotive to operate..gov to fix only important essential service’ current convid numbers dailys is getting higher.. plz consider to reduce more ppl to stay out of house..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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