Penang output down 5% to 10% because of CMCO

Penang output down 5% to 10% because of CMCO

FMM says although big multinational factories are expected to weather the storm, SMEs and others depending on local demand will take another beating.

The Federation of Malaysian Manufacturers says many factories at Penang’s Free Industrial Zone are feeling the effects of the CMCO.
GEORGE TOWN:
Penang’s manufacturing industries will face some headwinds in the coming months over reduced productivity and manpower issues because of the conditional movement control order (CMCO).
Ooi Eng Hock.

Federation of Malaysian Manufacturers (FMM) Penang branch chairman Ooi Eng Hock said factories in the Bayan Lepas Free Industrial Zone were already feeling the effects of the CMCO, with many telling their staff to work from home.

He said most factories had recorded a 5% to 10% drop in productivity just three days after the CMCO was imposed on Monday.

The larger multinational factories producing electronic parts and medical equipment, and supply chain industries were expected to weather the storm due to overseas demand, he said on the sidelines of an event at Komtar yesterday.

However, those in the construction equipment and steel industries were suffering losses as they relied on the domestic market, which had seen a slump in demand.

Ooi also said small- and medium-sized enterprises, which were just recovering from the impact of the MCO imposed in March, were also expected to be badly hit by the CMCO.

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