Clothing manufacturers and retailers are lamenting losses of RM163 million per day due to business closures due to the coronavirus pandemic

KUALA LUMPUR (July 16): The Malaysian Fashion, Textile and Apparel Federation (FMFTA) said today that the industry will see an estimated increase of RM100 million per day in 2020 due to business closures in Malaysia due to coronavirus-induced movement restrictions. It claimed to have suffered a loss of 63 million yen. To curb the pandemic, the sector’s export value in 2020 fell to about RM21 billion from RM27 billion the previous year.

In a statement distributed to reporters covering today’s FMFTA virtual press conference, the federation said the industry would be placed in the first phase of the National Recovery Plan (NRP) to allow the industry to resume operations and ensure safety. He said he is appealing to the government to move to the second stage. Its survival.

FMFTA said, “The federation also reiterated that given the current pandemic situation in Malaysia, members will not be able to survive if they remain inactive and wait for the transition from Phase 1 to Phase 3.”

According to a statement from FMFTA, the federation was established on October 29, 2019 by the Ministry of Trade and Industry with the mandate to unite all entities in the textile and apparel industry in Malaysia.

FMFTA is comprised of the Malaysian Textile Manufacturers Association, Malaysian Knitting Manufacturers Association, Malaysian Footwear Manufacturers Association, Persatuan Wanita Bumiputera Dalam Perniagaan Occupational Malaysia (PENIAGAWATI), Malaysian Clothing Dealers Association, Malaysian Textile and Apparel Center, PW It announced that it has 12 association members consisting of Gold and Silver. Decorative Goods Merchants Association, Malaysian Gifts & Premium Association, Persatuan Batik Malaysia, Malaysian Clothing Wholesalers Association, Asean Designers Guild, and KL Fashion Week.

FMFTA said that under the NRP, the fashion, textile and apparel industry will be registered in the third phase of the NRP.

“The industry has expressed deep concern as it cannot afford to be shut down any further and faces an estimated loss of RM163 million per day,” FMFTA said.

FMFTA said in a statement that in 2020, the industry battled the effects of the Malaysian Movement Control Order (MCO), which was first implemented in 2020, resulting in four foreign-owned multinational textile and apparel factories suspending operations in Malaysia. The company claimed in a statement that it had cut about 6,000 employees. March 2020 to curb the spread of the pandemic.

Since then, many local manufacturers in the industry have shut down or reduced operations, resulting in the loss of approximately 15,000 jobs in the industry, according to FMFTA. FMFTA has suspended operations in Malaysia by four well-known foreign-owned multinational textile and apparel factories, which it did not name.

FMFTA chairman Datuk Seri Tan Tiang Por said in a statement that since the first MCO, commonly known as MCO 1.0, 15% of Malaysian fashion, textile and apparel companies have ceased operations, and another 30% have suspended operations. He said he was closing down the business. Businesses are suffering due to lack of cash flow amid the uncertainty caused by the coronavirus pandemic.

He said the situation would worsen if operations were not allowed under NRP phase two.

According to a statement from FMFTA, board members have urged the government to ensure that the industry remains in the It asked for permission to operate in stages.

Speaking at a virtual press conference today, Tan said Malaysia’s fashion, textile and apparel industry is one of the major contributors to exports of Malaysian industrial products to the United States, Europe, Turkey and the rest of the world since the 1970s, especially to the United States, Europe, Turkey and the rest of the world. He said that.

According to him, the export value of Malaysia’s fashion, textile and apparel industry in 2020 decreased to RM21 billion from RM27 billion in 2019 due to the pandemic.

“With some of our members facing lawsuits and the risk of losing overseas customers, we believe the situation will worsen further and become irresistible.

“These international customers will likely move future orders to other countries due to the uncertainty if we are not allowed to open immediately,” he said.

Mr Tan also briefed reporters on how the figure of RM163 million a day in estimated losses for Malaysia’s fashion, textile and apparel industry was arrived at.

He said the industry’s annual manufacturing sales amounted to about RM24.23 billion in 2020, and the industry’s manufacturing sector’s revenue loss due to the pandemic shutdown was estimated at RM80.8 million per business day.

He said the industry’s retail segment’s revenue loss due to the closure was estimated at RM82.2 million per day as the industry’s retailers recorded a total annual turnover of about RM29.6 billion in 2020.

“Manufacturers are unable to continue absorbing huge daily losses due to the prolonged shutdown.

“Some retailers may choose to shut down their operations as they are unable to pay rent and wages due to zero revenue due to business suspension during the MCO,” he said.

Mr Tan said the industry would be required to implement the second phase of the NRP to avoid a collapse of the industry beyond bailout, considering that the industry has estimated losses of RM163 million per day in 2020. FMFTA said today that it believes it is extremely urgent to allow operations in the region.

He said the industry employs about 500,000 people across the country, and a prolonged shutdown would put them at risk of losing their jobs and worsening Malaysia’s unemployment rate.

“We expect more than 30% of retailers to go bankrupt and 150,000 employees to be laid off by NRP stage 3,” he said.

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