Malaysia's FMTA calls for allowing industry to operate in NRP phase-II

21 Jul '21

2 min read

Pic: Shutterstock

The Federation of Malaysian Fashion, Textiles and Apparels (FMFTA) recently urged the government to allow the industry to resume operations in phase-II of the National Recovery Plan (NRP) to avoid the collapse of the sector. Manufacturers and retailers have been facing losses amounting to RM163 million per day due to the shutdown, it claimed.

“We are deeply concerned that our industry will only be allowed to operate under phase-III of the NRP, as most of our members would not be able to survive if we were to wait for the transition from phase-I to phase-II without operating,” FMFTA chairman Datuk Seri Tan Thian Poh was quoted as saying by a Malaysian news agency.

“…A prolonged shutdown will put 500,000 employees at stake and this will definitely aggravate the unemployment rate in Malaysia,” he said during a virtual press conference.

The industry’s losses in revenue due to the shutdown during the movement control order (MCO) is estimated to be RM 80.8 million per work day. The industry also saw export value declining to RM21 billion from RM27 billion in 2019 due to the pandemic.

Tan said since the first MCO, 15 per cent of the fashion, textile and apparel businesses have ceased their operations and another 30 per cent are on the verge of closure due to the lack of cash flow and future uncertainties.

FMFTA foresees that more than 30 per cent of the retailers would collapse before phase-II of the NRP, and 150,000 employees would be retrenched if the government does not allow them to operate in phase-II.

The federation comprises 12 association members, representing the whole supply chain of the fashion, textile and apparel industry.

Fibre2Fashion News Desk (DS)

More Apparel/Garments News - Malaysia...