KUALA LUMPUR (July 21): Furniture manufacturer Poh Huat Resources Holdings Bhd has temporarily halted the operations of its main subsidiary in Vietnam.

In a filing, Poh Huat said Vietnam-based Poh Huat Furniture Industries Vietnam Joint Stock Company's factories in the Binh Duong province and Dong Nai province had paused production activities in compliance with the Vietnamese government's orders to close non-essential businesses to contain the spread of the Covid-19 virus in the nation.

Poh Huat said it is also taking measures to contain the spread of the virus and safeguard the health of its employees who may have been exposed to the virus.

"At present, no employee at the Binh Duong and Dong Nai production facilities has shown any symptom of Covid-19 infection. Poh Huat Vietnam will undertake screening and quarantine measures in the event any employee exhibits any Covid-19 symptoms or is confirmed Covid-19 positive.

It said the paused operations are expected to delay shipment of orders to customers in the US, and management is taking measures to reschedule delivery dates for affected parties.

On the impact the delay has on Poh Huat's financial performance, the company stated that it will make the necessary announcements as it is currently monitoring Covid-19 developments in Malaysian and Vietnam and assessing the impact on the operations and financial performance of the group.

The firm said Poh Huat Vietnam is able to mitigate the delay in some orders/shipment as it had certain amount of ready inventories to meet some of these orders and, if necessary, increase production with extended shifts upon recommencement of manufacturing activities.

At the midday break today, Poh Huat settled 1.48% or two sen lower at RM1.33.