Malaysia Analytical Update - MCO Extension Until 4/28 and Reopening of Various Sectors

Malaysia Analytical Update | April 10, 2020
Authors: Kim Yaeger, Tina Jamaluddin, Emma Tabatabai, Alberto Coria, Nick Zuroski 

Movement Control Order Extended Until April 28, Some Sectors Reopened
 
On April 10, Malaysian Prime Minister Muhyiddin Yassin announced that the Movement Control Order (MCO) will be extended for another two weeks until April 28.  In his speech, Prime Minister Muhyiddin stated that although the number of new daily COVID-19 cases has been declining in recent days, the government is maintaining its stringent movement control protocol to further slow the outbreak in the coming weeks.  He also noted that some sectors will be allowed to reopen during the extension period in order to mitigate the outbreak’s economic impact, following consultations facilitated by the special Cabinet committee co-chaired by Senior Ministers Datuk Seri Mohamed Azmin Ali and Datuk Seri Ismail Sabri Yaakob.  Those reopened sectors are listed below:
 
  • Automotive industry (limited to the export of fully equipped units - CBUs, equipment and components, as well as after-sales services such as maintenance).
  • Machinery and equipment industry.
  • Aerospace industry.
  • Construction projects and construction related services
    • Projects where Contractor G1-G2 is the main contractor.
    • Certified projects that achieve 90% physical improvement.
    • Tunnel work.
    • Maintenance work.
    • Slope work.
    • Emergency work included in contractual agreements.
    • Maintenance work, cleaning and drying of stagnant water, spraying insecticides on site to prevent breeding of Aedes mosquitoes and other pests.
    • Other works that if not completed can cause harm.
    • Building projects with IBS scores of 70 and above.
    • Construction projects with facilities / facilities for workers such as Centralized Worker Quarters or worker camps.
    • Professional services involved in the construction industry including architects, city planners, land surveyors, materials surveyors, project managers, facilities managers, and other related services.
  • Science, professional and technical services including research and development
  • Limited to: legal-related services; oil & gas related services; R&D activities related to COVID-19; testing labs for those sectors that are allowed to operate only.
  • Social health services including registered traditional medicine
  • Limited to registered Traditional and Complementary Medicine or TCM practitioners.
  • Hardware store services, electrical and electronic stores and glasses stores only in wholesale and retail.
  • Barber shops (haircuts only).
  • Laundry service (full service and not self service).
Reopened sectors may only operate following successful application with the Ministry of International Trade and Industry (MITI) and strict adherence to the MCO’s various health and safety guidelines.  Companies in the reopened sectors may submit applications for MCO exemption to the Ministry of International Trade and Industry (MITI) starting Monday, April 13 at 9:00am.  All applications must be submitted online to MITI at www.miti.gov.my.  The Council encourages members in these reopened sectors to apply as soon as possible as we are unsure how long the application process will remain open and MITI did not give extensive notice before closing its previous application process.  

In addition, on April 10 the Ministry of Transport released a statement announcing a third port-clearing exercise to be carried out between Monday, April 13 and Wednesday, April 15.  The exercise will allow transport of non-essential goods to reduce port congestion and ensure effective delivery of essential goods throughout the MCO’s extension period.  It will follow the current standard operating procedures that had been communicated earlier to the relevant port operators and extended to ports at Port Klang, Johor, Penang, Kuantan, Melaka, Bintulu, and Padang Besar bordering Thailand.  
 
As of April 10, Malaysia has 4,346 confirmed COVID-19 cases with 118 new daily cases, 70 deaths, and 1,830 recoveries.