Putrajaya’s recent decision to allow the economic sector to continue operating even as the country is in the midst of rising Covid-19 cases and deaths have been met with major backlash from citizens
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However, Callum Chen, President of Malaysian Consortium of Mid-Tier Companies (MCMTC) explained that the implications of a full lockdown would be devastating to the country, and would bring Malaysia to the edge of collapsing into itself.
“Malaysia is a relatively small country, and we rely heavily on exports. When you look at the whole thing, Malaysia is a very important part of the global supply chain.
“Take semiconductor chips for example. Last year, Malaysia exported about RM387 billion worth of semiconductor chips, we are one of the big players. But now, there is a big shortage of semiconductor chips around the world because of lockdowns.
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“And because of that, many larger multinational companies (MNC) like car and electronics manufacturers will also struggle, which may lead to them looking for business opportunities elsewhere,” he said.
Chen shared that mid-tier companies like his only take up 16 percent of the total workforce in the country, but contribute to 39.9 percent of the overall gross domestic product (GDP) in Malaysia, adding that the closure of the economic sector would have a domino effect on all levels of the economy.
Source: Malaymail
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