Malaysian Association of Hotels CEO on the MCO: We will lose all revenue streams

KUALA LUMPUR ((Jan 12): While he agrees with the need for the movement control order (MCO)  to imposed in the six states, Malaysian Association of Hotels (MAH) chief executive officer Yap Lip Seng (pictured) has to admit that it will further damage the local tourism and hospitality industry.

"With the implementation of restrictions based on MCO implementations, businesses are again expected lose all revenue streams, especially for tourism industry when all interstate travels are now restricted," Yap was told The Star.

Yap again urged the authorities to “support the industry and its people”.

He said the government should introduce a wage subsidy structure of 50% for “employees within the pay structure of below RM4,000 and 30% for those up to RM8,000”, the daily reported him saying.

"Industries need this to sustain, or else (employers would be) forced to retrench employees with immediate effect.

"With little or no revenue, businesses will not be able to retain its people, will not be able to pay salaries with no option but to let go of its employees,” he added.

According to MAH, a minimum of 6% hospitality workers lost their jobs last year owing to various movement restrictions, while the rest are “either on a pay cut or unpaid leave”.

The MCO will be implemented in Penang, Selangor, Kuala Lumpur, Putrajaya, Labuan in the Federal Territories, Melaka, Johor and Sabah for two weeks from Jan 13 to 26.

Meanwhile, conditional MCO will be enforced in Pahang, Perak, Negri Sembilan, Kedah, Terengganu and Kelantan; and the recovery MCO will be for Perlis and Sarawak.

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