More Sectors Allowed To Operate With Extension of MCO Malaysia

As announced by the Ministry of Trade and Industry Malaysia (MITI), more sectors can operate during the Movement Control Order (MCO) period. With the extension of MCO Malaysia, businesses from these sectors who want to operate can apply at Covid-19 Intelligent Management System (CIMS) 3.0 Portal from 8 am, 1 June 2021 onwards, and only completed applications fulfilling the conditions will be considered. (Reference: MITI FAQ dated 13 April 2020)

Industry Sectors Allowed By Extension of MCO Malaysia

1. Automotive industry

This is limited to complete-build up (CBU) export units, equipment and components, and after-sales service (maintenance).

2. Machinery and equipment industry

3. Aerospace industry

4. Construction and construction-related services, including:

• projects with G1-G2 contractors as main contractors
• projects that have achieved physical progress of 90% and above
• tunnelling works
• maintenance works
• sloping works
• emergency works that are consequent to contractual obligations
• maintenance, cleaning and drying of stagnant waters, spraying of insecticides in construction sites
• other works that could be dangerous if not completed
• building projects with IBS score of 70 and above
• construction of accommodation facilities for workers, such as centralised employee quarters or employee camps
• professional services involved with construction industry including architects, town planning, surveyor, material surveyor, project manager, facility manager and others

5. Science, professional and technical services, including R&D

This is limited to legal services, services incidental to oil and gas, R&D activities related to Covid-19, and testing labs for the sectors allowed to operate.

6. Social health services including registered traditional healthcare services

This is limited to only registered Traditional and Complementary Medicine or TCM practitioners.

7. Hardware stores and stores selling electrical and electronic appliances

8. Full laundry services (self-service not allowed)

Related Read: The Future of Supply Chains and Malaysia’s Role in Them »

Conditions To Adhere For Extension of MCO Malaysia

The business allowed to operate will have to adhere to the following conditions:

1. The company should reduce the number of employees to a minimum level or by at least 50% of current or registered employees for this extension period of the MCO in Malaysia.
2. Company must create a system to work from home for employees not involved in critical manufacturing activities
3. Company is required to fulfil the demand and needs of the domestic market for the products
4. Submit to the Ministry of International Trade and Industry (MITI) the list of employees (Name and Identity Card (IC) No.) involved during this extension period of MCO in Malaysia and to ensure that the movement of the employees involved is limited to the journey between factory and home.
5. Prepare body temperature thermometer and take the temperature of each employee every day at the entrance of the factory/premise. The daily temperature readings are to be recorded and filed for reference.
6. Company to immediately contact nearest Health Department or Government Hospital if employee’s body temperature is above normal
7. Employees to strictly adhere to the Covid-19 preventive measures as issued and updated by the Ministry of Health from time to time
8. A company must provide hand sanitiser at all entrances of the factory/premise and all other related areas within the factory/premise as well as ensure the use of face masks by each employee.
9. Company must carry out sanitation/disinfection process at the factory / premises before each shift or before the start of operation every day
10. The sanitation and cleaning process should be carried out three (3) times a day especially in common areas such as lobbies, elevators, cafeterias, meeting rooms, prayer rooms, factory bus and any indoor recreation centre
11. The company must establish and implement best-practices guidelines on social distancing especially at the production facility (production floor), cafeteria / canteen; meeting rooms; and multipurpose hall.
12. Company is responsible for full medical cost and disinfecting the factory premise in the event that an employee is found to be infected with Covid-19
13. Government stresses that the exemption can be cancelled or revoked if a company is found to not comply with the conditions.
14. Government has the right to amend the above conditions depending on the situation.

Related Read: What is Malaysia’s Short-Term Economic Recovery Plan (ERP)? »

Applying To Operate During Extension of MCO Malaysia

Below outlines the FAQs on the application matters for businesses to operate during the extension of MCO Malaysia:

Where should I send my application to?

You can send in your application in the CIMS 3.0 Portal.

How long does it take to process?

It will take approximately 5 working days.

What documents are required to submit during application?

• Provide company registration details (SSM Documents, Local Authority Documents)
• Provide correspondence and operational address
• Annual Revenue and/or Financial Statements (2017, 2018 and 2019)
• Specify total number of workers
• Specify economic activity / cluster
• Submit company declaration

Related Read: Using Electronic Signatures for Malaysia Company Statutory Documents »

The extension of MCO Malaysia allows businesses and companies in Malaysia to resume their operations. With the ongoing changes in the MCO, it is important for businesses to stay updated. At WeCorporate, we closely monitor the various changes to rules and regulations in Malaysia for you, so that you can focus on other matters to emerge from this pandemic stronger.

Christine

Christine is a content writer at WeCorporate whose focus is mainly on the business landscape in the APAC region. She also occasionally writes on trending topics and provides useful insights to aspiring entrepreneurs and seasoned businessmen alike.

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