KUALA LUMPUR (May 4): The Ministry of International Trade and Industry (MITI) today urged state governments to cooperate with the federal government's decision to implement the Conditional Movement Control Order or CMCO that allows almost all sectors of the economy to resume operations after almost two months of suspension under the MCO.
Failure to do so may result in the state governments facing the possibility of legal action from various parties, particularly industry players, Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali cautioned in a statement today.
As it is, Mohamed Azmin said various industry associations, including the Federation of Malaysian Manufacturers and the Malay Chamber of Commerce of Malaysia, have issued statements calling for state governments not to stop companies from resuming their operations from today, the first day of the CMCO.
"The government views seriously the position taken by the various state governments in refusing to execute the decision (CMCO).
"Their actions are not founded on lawful authority and are contrary to the policy of the federal government, all the more so in view of the fact that the federal government policy has already been made into law and enforceable throughout the country," he said, referring to the MCO, which was implemented in accordance with the country's Prevention and Control of Infectious Diseases Act 1988 (Act 342), and the government's subsequent decisions on it.
The statement was issued in response to certain state governments’ decision to delay the opening up of their economies via the CMCO, which begins today.
He also dismissed allegations that the government had restarted the economy hastily as false and baseless.
"The government had undertaken incremental measures to open up the economy from March 18 to April 28 through the MCO Stages 1 to 3, mandating compliance with health requirements. These careful and prudent actions have yielded good results particularly in terms of the increase in the opening of the economic sectors without jeopardising the government's efforts to contain the spread of Covid-19," Mohamed Azmin said.
He also said the state governments have been made aware that the federal government's decision to open up the economy was based on findings by various ministries and agencies that were presented for discussion with the Menteris Besar and Chief Ministers at the National Security Council meeting on April 28.
“Based on the discussions during the meeting, the state governments realised that should the MCO continue until June 2020, the cumulative loss of the national income is estimated to reach RM146 billion or a shortfall of 10.3% of the GDP. This would wipe out the economic success that has been achieved for the last four years,” he said, adding the meeting had agreed to implement the CMCO.
The standard operating procedures under the CMCO were also provided to all state governments on May 2, the minister said.
“It should be stressed that the federal government’s decision is valid according to law. Act 342 was legislated and made enforceable effective April 1, 1989 following the agreement by all states then, including Sabah and Sarawak, to bring about a uniformed law for the purpose of preventing and controlling infectious diseases in Malaysia and enforceable throughout the country,” Mohamed Azmin said.
“Hence, the state governments are urged to co-operate in executing the federal government’s decision to regenerate the economy. The government is confident that we, as a team, will succeed in winning the ‘war’ against the Covid-19 pandemic,” he added.
As of today, nine state governments have yet to fully open up their economic sectors under the CMCO, amid concerns that resumption of social and economic activities could cause another spike of new Covid-19 infections.
They are: Kedah, Sabah, Pahang, Penang, Kelantan, Sarawak, Selangor, Perak and Negeri Sembilan.