Additional sectors approved for operation during MCO

The COVID-19 outbreak has put a stop to many a business and turned our lives upside-down. The Movement Control Order may serve to protect us from the virus, but it does not support us from economic breakdown if it continues any longer.

As such the government has considered to approve some additional sectors to continue operations in the hopes to bolster the economy once this madness is over.

Since March 18, at the start of the MCO, the Malaysian government has taken pro-active steps in balancing the country’s economic sustainability by allowing critical economic sectors such as medical and basic needs sectors to operate. However, operations are governed by strict conditions set by the Ministry of Health (MOH).

The Cabinet, following the presentations and findings by MITI, the Ministry of Finance, Khazanah Nasional Berhad and Bank Negara, has decided to allow several additional economic sectors to continue operations in phases. Again, operations of these businesses need to adhere to strict health and safety guidelines.

This decision is to alleviate the detrimental effects that the MCO would have on the economy and well-being of the people, especially SMEs which comprise the largest contributor to the nation’s workforce.

MITI has reviewed the additional sectors that are allowed to operate based on the following considerations:

– importance in the global value chain or GVC and the country’s exports. This step is to ensure the stability of export activities;

– activity of economic sectors with high value-added multiplier;

– impact on the sustainability of SMEs in the economic sector, particularly in manufacturing and services; and

– size of workforce involved.

Below is a list of the additional sectors approved for operation during MCO upon approval:

• Automotive industry (limited to exports of CBU, parts and components, as well as after-sales services, e.g. repair and maintenance).
• Machinery and equipment industry.
• Aerospace industry
• Construction projects and services related to construction works:
  • Projects whereby the main contractors are G1–G2
  • Projects that have achieved physical progress of 90% and above
  • Tunneling works
  • Maintenance works
  • Sloping works
  • Emergency works that are consequent to contractual obligations
  • Maintenance, cleaning and drying of stagnant water, spraying of pesticides at construction sites which prevent the breeding of Aedes mosquitoes and other pests
  • Other works that if left incomplete may result in danger
  • Building projects with 70 IBS score and above
  • Construction projects with accommodation facilities for workers, such as centralized quarters for workers or workers’ camp
  • Professional services related to the construction industry including architects, engineers, town-planners, land surveyors, quantity surveyors, project managers, facility managers as well as other relevant services
• Hardware shops, electrical and electronic (E&E) shops and optometrists in the wholesale and retail industry
• Barber shops (offering haircuts only)
• Laundry services (only those offering full-service and does not include self-service launderettes)

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