Textile, apparel sector pleads for business resumption

PETALING JAYA: As losses mount, those in the fashion, textile and apparel sector are making an appeal to the government to allow them to operate under Phase Two of the National Recovery Plan (NRP).

Federation of Malaysian Fashion, Textile and Apparel (FMFTA) president Datuk Seri Tan Thian Poh said they were concerned with the current situation as they might only be allowed to operate when the country reaches Phase Three of the NRP.

“Total losses faced by manufacturers and retailers in the fashion, textile and apparel industry amount to RM163mil per day.

“As such, there is a great urgency for the industry to be allowed to operate under Phase Two to avoid the collapse of the industry beyond salvation,” he said during a virtual press conference yesterday.

The government’s threshold pointers for Phase Two of the NRP are average daily Covid-19 cases dropping below 4,000, intensive care unit usage no longer at a critical level and 10% of the country’s population having received two doses of the vaccine.

Since the first movement control order in 2020, Tan said about 15% of fashion, textile and apparel businesses had ceased operations while 30% were on the verge of closing down due to a lack of cash flow and future uncertainties.

“Due to the numerous MCOs, the fashion, textile and apparel manufacturers’ export values have reduced from RM27bil in 2019 to RM21bil in 2020.

“We reckon the situation will deteriorate further and will be beyond salvaging as some of our members are facing litigation and risk losing their overseas customers.

“These overseas customers will move their future orders to other countries if we are not allowed to operate soon,” he said.

He also noted that four renowned foreign-owned multinational textile and apparel factories had ceased operations in the country and retrenched about 6,000 employees in 2020.

“Since then, the chain effect continues, with many local SME manufacturing companies in the industry having to shut down or downsize, resulting in about 15,000 job losses.

“The situation will worsen if we are not allowed to operate under Phase Two of the NRP,” said Tan.

The supply chain of the fashion, textile and apparel industry employs about 500,000 people nationwide.

“A prolonged shutdown will put all the 500,000 employees at stake, and this will definitely aggravate the unemployment rate.

“We foresee that more than 30% of the retailers will collapse before Phase Three of the NRP and about 150,000 employees will be retrenched,” he said.

On a related matter, FMFTA applauded the government’s effort to expedite the national vaccination programme, while also urging it to review the threshold set by the National Security Council and immediately move to Phase Two of the NRP.

“I think the country is on the right track because about 30% of Malaysian adults have received their first dose of Covid-19 vaccine while more than 17% have been fully vaccinated.

“The country should move to Phase Two despite the high number of cases as other developed countries have accepted that Covid-19 is something we have to live with,” said Tan.

The group also urged the government to allow businesses to resume full operations if all employees have been fully vaccinated.