At long last, the land border between Malaysia and Singapore at the Causeway and the Second Link will now be open for travellers between the two countries. This will take place on Monday, November 29, 2021, the same date that the Vaccinated Travel Lane (VTL) will be open at KLIA and Changi Airport for travellers between the two countries.
However, those who can cross over for now will only be holders of long-term passes and those working in Johor or Malaysia. Under the VTL, only fully-vaccinated travellers can travel between both countries, and they must take a COVID-19 test and obtain a negative result. They will not be subjected to a quarantine or Stay-Home Notice. Hopefully, all other travellers will also be allowed to cross before long.
Entering Singapore
All VTL travellers must have been fully vaccinated and present a digital proof of vaccination that is recognised by the Singapore authorities. Short-term visitors must purchase travel insurance, with a minimum coverage of S$30,000 for COVID-19-related medical treatment and hospitalisation costs, prior to travel to Singapore. These visitors must also use the TraceTogether app in Singapore to facilitate contact tracing.
Children aged 12 years and below who are not vaccinated will be allowed to travel under the VTL into Singapore if they are accompanied by a VTL traveller who meets all VTL requirements. VTL travellers must have remained only in one or more of the VTL countries, or a country/region in Category I of Singapore Ministry of Health’s Country/Region Classification for Border Measures in the last 14 consecutive days prior to departure to Singapore.
Visitors from Singapore
Travellers from Singapore do not need to apply to travel to Malaysia under the VTL since the entry facilities would be processed upon arrival and they are also not required to apply for a MyTravel Pass from the Malaysian Immigration authorities.
Short-term visitors, including business and official travellers, must obtain a valid visa for visa-required visitors and they must also possess a return ticket (if traveling by air) and travel insurance with a minimum coverage of RM100,000 for Covid-19-related medical treatment and hospitalisation costs.
Click here for the latest information on entry requirements into Singapore.
From tomorrow, Monday August 16, 2021, a greater degree of normalcy returns to Malaysia as the government will allow a number of activities to resume. Announcing this long-awaited development, the Prime Minister said that the vaccination programme has covered a significant portion of the population already and there was also a decline evident in the number of serious cases of COVID-19 infection, hence the removal of restrictions which have been in place since the beginning of June 2021.
Of interest to the auto industry which has been facing growing challenges as it could not carry out normal business is permission to operate showrooms and distribution centres again. Additionally, manufacturing activities are also allowed to resume, subject to certain conditions. This means that, for the auto industry, things can return to normal but with observance of the Standard Operating Procedures (SOPs) that we should all be familiar with by now.
Orders waiting to be fulfilled
While service centres have been allowed to operate so as to provide essential services to motorists, the closure of showrooms has prevented visits by customers who may be shopping for a new car, as well as deliveries of new vehicles. However, while the showrooms have been closed, many companies have been able to get bookings via their virtual showrooms online during the past two months. Now they will be rushing to complete those orders and deliver the new vehicles to customers.
However, stocks may not be readily available as the suspension of assembly operations for two months has meant that there have been no new vehicles coming from the plants. The government is allowing plants to resume their operations with workforce levels dependent on the percentage of workers already vaccinated. Those which have had more than 80% of their workers vaccinated are allowed to operate at full capacity, again with adherence to SOPs.
Assembly of vehicles will be allowed to resume and many companies will be rushing to meet the backlog of orders which has built up over the past two months.Employees at Perodua awaiting their turn for vaccination at the carmaker’s headquarters complex.
MITI has helped to organize the vaccination programme for workers in the manufacturing sector with PIKAS (Program Imunisasi Industri COVID-19 Kerjasama Awam-Swasta), the public-private sector partnership immunisation program. This has been important, particularly in the Klang Valley where many of the country’s economic and industrial facilities are located.
Accessory shops, carwash centres reopen
For those who require accessories, such stores can now open for business while carwash centres are also allowed to operate again. And if your hair has gotten rather long, the good news is that barbers (as well as hairdressers and beauty palours) can also resume their business. Also include in the list are shops which sell electrical items, household items, jewelry furniture, sportswear and fashion and accessory centres.
MITI has also made it a condition that employees who work in their offices must take biweekly RTK antigen tests approved by the Health Ministry. While many companies will continue with the work-from-home routine to avoid the additional costs of such frequent testing, those in the manufacturing sector won’t be able to avoid the expenditure which can be quite substantial.
Only for those fully vaccinated
An important condition is that those who visit all these places must be already fully vaccinated. Full vaccination means 2 doses of Pfizer, AstraZeneca or Sinovac vaccines, with the second dose received no less than 14 days ago. For those who the Johnson & Johnson or CanSino vaccines, a single dose is considered enough but must have been received not less than 28 days ago. If you have not been vaccinated or do not meet these conditions, or you have symptoms of COVID-19 infection, DO NOT go to any public places and remain at home. If your symptoms are serious, seek medical help immediately.
Visitors to showrooms, service centres and all public places must still observe SOPs.
The number of new cases daily has been over 20,000 since August 11 but hopefully, as vaccination of a larger proportion of the population is completed, spread of infections can be reduced. According to a report, there are signs that the most serious cases are getting a bit less now although hospitals are still overloaded. Precautions are still necessary (don’t think vaccination makes you immune to the coronavirus) and facemasks should be used in public places with social distancing observed. If everyone can do their part and protect themselves and each other, perhaps we can return to the sort of life we have before 2020.
With the ongoing Movement Control Order (MCO) which began on 1 June 2021, many business sectors have had to remain closed. This has had an impact and in the auto sector, new vehicle sales for the whole industry have dropped tremendously in the month of June.
Commenting on the situation, President of UMW Toyota Motor (UMWT), Ravindran K., said that the continued closure of all Toyota and Lexus showrooms nationwide meant that no business could be conducted. Manufacturing of vehicles including the supply chain and logistic efforts have also come to a halt. While accepting that the Government has had to act for the good of the country, it has presented a challenge for the company.
Lexus and Toyota showrooms throughout Malaysia have to remain closed, which has meant that no sales can be conducted.
“We still have an encouraging order bank for the various models. Nevertheless, we are hopeful that the restrictions of the lockdown can be eased to allow us to operate in a limited and safe way. Naturally, we will abide by all Standard Operating Procedures, as we have during the past year,” he said.
Online showrooms and booking available
While the showrooms remain closed, the public can still obtain detailed information about Toyota and Lexus vehicles at their respective websites – toyota.com.my and lexus.com.my. They can find out about the models available in Malaysia and the attractive financing schemes for different requirements. Bookings can also be made online.
Mr. Ravindran reminded customers of the exemption of Sales & Service Tax (SST) which is extended until the end of 2021. The exemption covers both locally-assembled and imported Toyota and Lexus models and provides meaningful savings.
“We encourage customers to make their bookings online as we can then plan production at our two assembly plants to minimize waiting time when the restrictions are lifted, to enable customers to enjoy the current financial incentives,” he added.
Toyota and Lexus owners can still get help in emergencies as support services are still allowed to operate 24/7.
Aftersales support still available
Selected UMWT service centres continue to operate according to the provisions by the state and local authorities. Vehicle owners can therefore obtain assistance in emergencies. For assistance at any time, owners can call the Toyota and Lexus Helplines at 1-800-888- 247 and 1-800-225-3987, respectively.
Effects of prolonged restrictions
“While the government has formulated a National Recovery Plan (NRP) in four phases, we are still in Phase 1, which is the most restrictive. The current situation also makes planning for recovery difficult,” said Akio Takeyama, Deputy Chairman of UMW Toyota Motor.
Mr. Takeyama said that prolonged restrictions on vehicle production can have an impact not just on passenger vehicles but also commercial vehicles, which are essential for transportation of goods around the country.
Some of the parts which are made in Malaysia and supplied to local assembly plants as well as exported to factories in other factories assembling Toyota vehicles.
“Furthermore, export business will be affected as well as our subsidiaries export a substantial amount of automotive components as part of Toyota’s global supply chain. If this situation continues for long, we are concerned that our overseas customers may look for new suppliers as they cannot have their own production delayed due to shortage of parts from Malaysia. This could have an impact on Malaysia’s economy as a whole if export business declines,” he warned.
The prolonged situation could also impact progress with regard to the company’s initiatives for carbon neutrality through the manufacturing of hybrid electric vehicles. This was announced earlier in the month and will see UMWT making a RM270 million investment at its assembly plant in Selangor.
TOYOTA GAZOO Racing Festival
This year sees the TOYOTA GAZOO Racing Festival (TGR Festival) being run for the fourth consecutive season. The event has grown in popularity and scale over the years, with the highlight being the Vios Challenge which is the only one-make race in Malaysia.
Only the first round of the fourth season of the TOYOTA GAZOO Racing Festival’s Vios Challenge could be held so far.
“It is unfortunate that the ongoing pandemic and strict MCO conditions do not allow running of public events. This includes motorsports so the fourth season of the TOYOTA GAZOO Racing Festival (TGR Festival) and Vios Challenge are on hold. When we ran the exciting first round on March 2 at the Sepang International Circuit, we were looking forward to the next two rounds as well as the introduction of the GAZOO Racing Vios Sprint Cup and GAZOO Racing Enduro Cup,” said Mr. Takeyama, who is also Chief Motorsports Officer of GAZOO Racing Malaysia.
“Let us all do our part and pray that the number of COVID-19 cases quickly reduces, and the government will be able to relax the regulations to allow public events,” he said.
The Malaysian auto industry, like many other industries in the country, has been badly impacted by the measures taken to fight the COVID-19 pandemic since last year. Representing the new motor vehicle distributors, assemblers and manufacturers, the Malaysian Automotive Association (MAA) commends the government for its efforts to contain the spread of the coronavirus in order to save lives.
However, the MAA feels the Enhanced Movement Control Order (EMCO), Phase 1 and Phase 2 of National Recovery Program approach needs to be reviewed and re-considered, especially for key economic states like Selangor, Wilayah Persekutuan Kuala Lumpur, Perak, Johor, Penang and Negeri Sembilan. The EMCO approach had been enforced in Selangor and WP Kuala Lumpur for more than 2 weeks now while some states have transitioned into Phase 2 of the NRP.
Whole supply chain affected
“The whole supply chain in the automotive sector has been seriously affected particularly by the complete shutdown of operations in EMCO states/localities like Selangor and WP Kuala Lumpur. Feedback received from many of our members indicated that business operations – even in non-EMCO states – are hampered due to disruptions in the supply chain”, said Datuk Aishah Ahmad, President of MAA.
During the EMCO stage, not a single business activity from the automotive sector is allowed to operate, while for states under Phase 1 and Phase 2 of the NRP, the vehicle showroom and distribution centres are still not allowed to operate despite the opening up of most of the other economic sectors.
Production and distribution of automotive products (motor vehicles, components and parts) and sales of vehicles have been halted since June 1, 2021. The stoppages of all these activities will have far-reaching implications to the entire automotive ecosystem nationwide. In April last year, sales and production plummeted to almost zero when the first MCO was in force.
Implications of continuing closures
While automotive companies may suffer from loss of revenue, profitability, export markets and closure of businesses, their employees face issues such as pay cuts, loss of income (particularly for sales personnel) and even retrenchment in certain cases. The government will also lose in terms of lower revenue collected from excise duties, import duties, sales taxes and road taxes for motor vehicles.
The closures of automotive workshops and parts centres in EMCO states/localities such as Selangor and WP Kuala Lumpur will not only cause inconvenience to all vehicle owners in general but may also endanger those whose vehicles may have defects or problems. Failure to repair faulty parts in such vehicles can pose a serious risk to all road-users. These include vehicles which may be belonging to frontliners such as those in the PDRM, Ministry of Health, etc. who may encounter damages or breakdown in the course of doing their work.
With factories and distribution centres (for vehicles and parts) in EMCO states/localities unable to operate, this will disrupt the supply chain to business operations in states/areas under Phase 1 and 2 of the National Recovery Plan (NRP). As a result, the recovery efforts by the government will be negated.
Increasing damaged inflicted
The consequences arising from stoppages of the automotive factories, workshops, and distribution centres (for vehicles and spare parts) in EMCO states/localities is indeed very serious, the MAA stresses. The longer these facilities do not operate, the greater the damages inflicted on to the automotive industry in particular, and the country in general.
The MAA is therefore appealing to the government to allow automotive sector activities (workshops and distribution centres for passenger and commercial vehicles and spare parts) to operate with immediate effect albeit at certain capacity and with strict SOPs in place in states under EMCO, Phase 1 of NRP and Phase 2 of NRP.
Selangor and WP Kuala Lumpur account for close to 50% of Malaysia’s total industry volume of new vehicles each year. Many of the key automotive companies for both production of vehicles and components are located within these two states. In addition, some MAA members also have their sole and or central distribution centre (for vehicles and spare parts) located within the Klang Valley.
In addition, to reduce congestion at ports, the MAA is proposing to allow a window of two to three days per week for receiving and storing cargos for the automotive sector similar to what was practiced during MCO 1.0 last year. The Malaysian automotive industry is heavily dependent on the domestic market. Export markets exist but are insufficient to sustain the industry.
Every industry is facing challenges with the current COVID-19 pandemic, and the auto industry in Malaysia is no exception. The government has tried to strike a balance between strict conditions to cut the chain of infection and avoiding a major impact on businesses and the economy of the country. To do this, it has had engagement sessions with representatives from leading chambers of commerce, business associations and trade organisations.
The Malaysian Automotive Association (MAA), which represents new motor vehicle distributors, assemblers and manufacturers in Malaysia, commends and appreciates all the efforts by the government to tackle the problems caused by the Covid-19 pandemic. It also applauds the government for listening to the various stakeholders including the business communities and industry players.
“The MAA also expressed the local automotive industry views and concerns at the engagement session. We highlighted that the Total Industry Volume (TIV) in April 2020 fell to an all-time low of 152 units, the lowest ever monthly TIV recorded by the industry over the past 50 years. This happened when all automotive business operations stopped due to the nationwide implementation then of MCO1.0 from March 18, 2020 till May 3, 2020,” said Datuk Aishah Ahmad, President of the MAA.
She added that motor vehicles play an important role in the country’s economy as they are needed to complete the entire supply chains of all businesses and industries.
Unlike last year when everything came to a standstill, the auto industry is allowed to continue operating but with strict SOPs. They can still sell new vehicles as well as provide aftersales services to customers. The assembly plants can also continue with their operations.
After getting feedback from various stakeholders, the government had decided not to impose a nationwide total lockdown again. Businesses and economic sectors are allowed to continue to operate during MCO 3.0 albeit with much more stringent SOPs.
Businesses and industries including MAA members accept the decision by the government to impose a much more stringent SOPs including limiting employee attendance capacity to only 60% at any given time, banning certain non-essential activities and restricting the movement of people during the enforcement of MCO3.0. “We recognise that such tough measures and rules are necessary to protect lives as well as the people’s livelihoods,” she said.
The MAA also acknowledges the dynamism of the COVID-19 pandemic which may cause the government to make constant changes to the SOPs from time to time. “On our part, we have urged all MAA members to give their fullest support and cooperation to the authorities. We also urged all our members not to treat the COVID-19 virus lightly. The virus is highly dangerous and can cause illnesses to infected people and in the worst case, death.”
Various versions of the Movement Control Order (MCO) are in effect with interstate and interdistrict travel being forbidden unless permission is given by the police. As there will still be many people permitted to travel long distances on highways, PLUS is ensuring that their needs are met safely when they are at the rest and service areas (R&R).
Last year, the first MCO saw all R&Rs shut down completely but this time round, many of the stalls are permitted to continue business, especially those which provide fresh food, drinks and snacks. PLUS urges the public to patronize these R&R businesses as the support will go a long way to enable the local business owners and their workers to sustain their livelihood during this period.
Dine-in is not permitted at the food courts, and to minimize interaction, food or drinks can be pre-ordered using the PLUS app.
More than 600 businesses operating
More than 600 businesses are open at the R&Rs at Dengkil (both sides), Rawang (Northbound), Sungai Buloh Overhead Bridge Restaurant, Seremban (both sides), Ulu Bernam (Southbound), Tapah (Southbound), Gunung Semanggol (both sides), Gurun (both sides), Juru Lay-by (Southbound), Pagoh (both sides), Machap (both sides), Kulai Lay-by (Southbound) and 3 R&Rs along the LPT2 highway to the East Coast. The three are at Ajil (Northbound), Paka (Northbound) and Perasing (Southbound).
Everyone has to observe the SOPs – temperature scanning, use of facemask, contact registration and social distancing – and for safety, PLUS has included a Pre-Order function in the PLUS App for contactless ordering, or through this link – or through orderdisini.plus.com.my/. They should keep a safe distance of at least 1 metre apart when lining up for food or when using any facilities.
Dine-in only allowed in CMCO areas
All businesses at R&Rs and lay-bys which are located in MCO states are still open from 6 am to 12 am for take-away only as the dining areas at the food courts are closed to prevent the convergence of crowds. For CMCO states, however, operating hours are from 6 am to 12 am and dine-in is allowed with strict physical distancing and compliance to the SOPs.
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Latest information on everything related to PLUS highways and facilities can be found at www.plus.com.my, with the PUTRI chatbot making interaction faster and easier.
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PLUS Malaysia Berhad has reopened its food court dining areas at all its rest and service areas (R&Rs), including the two overhead bridge restaurants and lay-bys along PLUS-operated highways as well as the Lebuhraya Pantai Timur 2 (LPT2). This follows the government’s announcement effective February 10, 2021.
While interstate travel is not permitted and inter-district travel is controlled, there are still motorists who will be using the highways to go to work, and they will be able to stop at the R&Rs to get food or drinks.
However, PLUS advises all customers to comply with the Standard Operations Procedure (SOP) which allows 2 persons per dining table with one-metre physical distancing when stopping over to have their meals at the respective areas. The highway concessionaire also advises all highway customers to adhere to the standard safety SOPs of wearing a facemask, registering on the MySejahtera App, checking temperatures at the designated points and keeping a safe distance of one-metre apart when lining up for food or using the facilities at the R&Rs and other public places during this period.
During the Movement Control Order (MCO) period, all facilities at the R&Rs and lay-bys such as public restrooms and suraus are open 24-hours. Meanwhile, restaurants, stalls and mobile food trucks including convenience stores are operating from 6 am to 10 pm.
Additionally, many of the stalls at the R&Rs can accept orders via a pre-order function in the PLUS App. The app can be downloaded for free through the Google Play Store for android devices or the App Store for iPhone users.
Proton is usually the first to provide an overview of their sales for the previous month, and for the first month of the new year, they have reported a drop of 29.9% in sales compared to January 2020. During the month, the carmaker delivered 5,964 units and with its estimate that the Total Industry Volume for the month will be slightly above 32,000 units, that means a market share of 18.5%, about 1% less compared to the same month last year.
Proton points out that the overall figures are a reflection of supply not being able to meet demand rather than a reduction in bookings. Nevertheless, it is clear that there are economic effects on various industries and consumer confidence.
The New Normal at Proton outlets where Standard Operating Procedures are observed by the public and staff.
Second MCO slows down sales
“January was a difficult month for Malaysia’s automotive industry. Hopes were high that the momentum built at the end of 2020 would be carried forward, especially after the announcement of PENJANA incentives remaining available until the end of June this year. Unfortunately, the second MCO (Movement Control Order) announcement put a damper on those hopes,” said Roslan Abdullah, CEO of Proton Edar.
“Still, Proton, as well as the rest of the industry, is in full support of all measures the government has in place to control the rate of infection. The safety of all Malaysians needs to remain as the main priority and companies need to pivot in order to achieve their goals in a changed market environment,” he said.
“Measures like the MCO have naturally affected the number of customers coming to showrooms, but we can receive bookings online helping to boost our sales,” he added.
Bestselling Proton model in the first month of 2021.
The Saga started the year as the bestselling model with 2,583 units delivered. The two SUV models – the X70 and X50 SUV twins saw lower volumes of 892 units and 1,082 units, respectively. To date, 4,809 units of the X50 have been delivered since its launch at the end of October last year.
Effect on production volume
While Proton’s order bank remains healthy with orders carried over from the end of last year, the company is still working hard for supply to catch up to demand. As an industry that depends on a global supply chain, automotive companies are acutely affected by delays to vendors that have a knock-on effect to their production lines.
“However, our supply lines have been disrupted over the last few months by the coronavirus making it difficult to ensure a steady flow of parts needed to build our cars. It’s something all car manufacturers have been facing for the past year but we are hopeful that with the arrival of a vaccine things will stabilise by the middle of the year,” Encik Roslan said.
Product launch plans remain
Despite the delays, Proton intends to pursue its product launch plans for 2021 as the company strives for more sales growth both domestically and abroad. “For now, Proton will stick to its 2021 product launch schedule. We have an exciting series of improved products in the pipeline while the Proton X50 will now be able to establish its standing in the market by benefitting from a full year of sales,” he said.
As in 2020 when the first Movement Control Order (MCO) restricted movements to the extent that even government offices had to shut down, the Ministry of Transport Malaysia has announced that renewal of driving licences need not be done if they expire between February 1 until March 31, 2021.
This is in view of the travel restrictions which presently limit people to a range of 10 kms from their homes, and also to reduce crowds at the JPJ offices. Unless another announcement is made, renewal will have to be done within 30 days from March 31, 2021.
This exemption is, however, not for those with commercial vehicle and vocational licences (GDL and PSV). They can still renew their licences as they are classified under Essential Services.
While renewal of the driving licence can be deferred, the vehicle must still have valid insurance. A copy of the insurance e-cover note must be available for inspection if requested by an authority. Valid coverage is important in the event of an accident.
Many insurance companies will be able to provide renewal services online, and companies like MyEG also handle renewals of driving licences and roadtax online. They can deliver the documents to an address provided for a small fee.
