Covid-19: Government allows more businesses to operate

As mentioned in our Alert of 10 April 2020, the Prime Minister of Malaysia has announced that the nationwide Movement Control Order will be extended until 28 April 2020 (‘MCO Phase 3’) and that several selected sectors of the economy will be reopened in stages but subject to stringent health guidelines.
 
Following the Prime Minister’s announcement, the Ministry of International Trade and Industry (‘MITI’) issued a list of the sectors of the economy that will be allowed to operate during the MCO Phase 3 period. The sectors are as follows[1] -
 
  • Automotive industry (limited to exports of Completely Built-Up (CBU) units, parts and components, as well as after-sale services, for example repair and maintenance);
  • Machinery and equipment industry;
  • Aerospace industry;
  • Construction projects and services related to construction works -
  1. Projects whereby the main contractors are G1–G2;
  2. Projects that have achieved physical progress of 90% and above;
  3. Tunneling works;
  4. Maintenance works;
  5. Sloping works;
  6. Emergency works that are consequent to contractual obligations;
  7. Maintenance, cleaning and drying of stagnant water, spraying of pesticides at construction sites to prevent the breeding of Aedes mosquitoes and other pests;
  8. Other works that if left incomplete may result in danger;
  9. Building projects with an IBS score of 70 and above;
  10. Construction projects with accommodation facilities for workers, such as centralised quarters for workers or workers’ camp;
  11. Professional services related to the construction industry including architects, engineers, town-planners, land surveyors, quantity surveyors, project managers, facility managers as well as other relevant services;
  12. Science, professional and technical services, including research and development (‘R&D’) (limited to services incidental to legal services[2], oil and gas, R&D activities related to Covid-19, and testing labs for the sectors that are allowed to operate);
  • Social health services including registered traditional and complementary medicine (TCM) practitioners;
  • Hardware shops, electrical and electronic (E&E) shops and optometrists in the wholesale and retail industry;
  • Barber shops (restricted to haircuts only); and
  • Laundry services (only those offering full-service and excludes self-service laundrettes).
Prior approval of MITI is required for companies in the sectors listed above to operate during the MCO Phase 3 period. Applications must be made online via MITI’s website and may be submitted from 9.00 a.m. today.
 
Companies that receive approval from MITI to operate during the MCO Phase 3 period must comply with the prescribed Standard Operating Procedure (‘SOP’) and the requirements/ guidelines set by the Ministry of Health and other relevant enforcement agencies from time to time. Failure to comply with the SOP and the relevant requirements/ guidelines will result in the immediate revocation of the operating approval and legal action being taken under the relevant laws.
 
Alert prepared by Tan Wei Liang (Associate) of Skrine.
 
 

[1] These sectors are set out in Annex 1 of the media statement which is available here.
[2] The Malaysian Bar, a professional body that regulates the legal profession, stated that that the Minister in the Prime Minister’s Department (Parliament and Law) has requested that law firms remain closed during the MCO Phase 3 period and that the Government will provide clarification and a SOP for the legal sector, upon consultation with the National Security Council.