MCO extension can help protect industry, says Auto Component Association - MIDA | Malaysian Investment Development Authority
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MCO extension can help protect industry, says Auto Component Association

MCO extension can help protect industry, says Auto Component Association

07 Feb 2021

KUALA LUMPUR, Feb 7 — The recently-extended Movement Control Order (MCO) to Feb 18 would help to protect the industry as it recovers this year, according to the Perodua Suppliers Association (P2SA).

Its president Musa Zahidin Ahmad Zaidee said that while the COVID-19 situation remains the main concern for its 129 members, the MCO is expected to manage the situation until vaccinations begin.

“Most of our members are located in Selangor but by following the standard operating procedures (SOPs) laid out by  the government and by effectively communicating between our members and our original equipment manufacturers (OEMs), we believe we will be able to perform better this year,” Musa Zahidin told Bernama here today.

“Our main objective is to keep everyone safe and, at the same time, protect our livelihood. The only way to achieve that is to work with the government to lower the number of COVID-19 cases – especially in industrialised areas,” he added.

According to him, P2SA and Perodua will work together to create SOPs for the entire automotive ecosystem. 

SOPs that comply with stringent safety procedures at the workplace, proper hostel that offer safe living conditions for staff and by offering rotating COVID-19 tests for all employees – among others.

“Right now, we are working together to nalise these best practices by learning from any mistakes or even successes in managing this crisis so far,” he said.

He stressed that all vendors do follow the SOPs provided by the government at their respective operations and strict monitoring will be done by a group consisting of P2SA members and representatives from Perodua.

“There is very little room for error as the fate of the industry and, more importantly, the health of our country depend on our commitment in following these SOPs,” he said. Meanwhile, he said Perodua’s recent announcement of its commitment to purchase RM6.5 billion worth of local components in 2021 – RM500 million more than the RM6 billion spent in 2020 – has given hope that 2021 will be the year of recovery for the industry.

“We thank Perodua for its commitment for the ecosystem and this will go a long way in keeping most of the local players aoat, especially the local vendors, as we deal with this pandemic,” said Musa Zahidin.

He said the Malaysia Automotive Association’s total industry volume target of 570,000 units for this year is also another positive indication that the industry and the economy are heading towards the right direction.

“This pandemic is temporary in nature and we just need to hold out a little longer,” he added.

Source: Bernama