PETALING JAYA: The Malaysia Retailers Association (MRA) has appealed to the government to declare the Covid-19 pandemic as equivalent to a force majeure, and called for the introduction of a Covid-19 bill to offer temporary relief to businesses who are unable to fulfil their contractual obligations, similar to the measures seen in Singapore.
In a statement, the association said the pandemic and the ensuing movement control order has had an unforeseeable economic impact, and undermined the ability of businesses to fulfil their contractual obligations.
“It would be unfair to hold businesses strictly liable for their failure to meet their obligations and companies may have to pay damages or forfeit all their deposits besides facing the possibility of being sued and face lengthy litigation or possible insolvency.
“It will, in that way, seek to provide temporary cash-flow relief for these businesses, who may otherwise have to pay damages or risk having their deposits or assets forfeited,” it said.
The MRA also sought more assistance in electricity tariffs and a six-month Employees Provident Fund (EPF) contribution deferment.
The MRA pointed out that holders of public distribution licences with special agreement tariff (tariff bulk) are not included in the 15% electricity bill discount for the period between April 1 and Sept 30, 2020. listed under the Economic Stimulus Package 2020 unveiled on Feb 27.
It said a significant number of shopping malls including retail shoplots, independent buildings and/or properties with retail businesses purchase bulk high voltage electricity and distribute to their tenants under a distribution licence.
“We would like to appeal to the government and Tenaga Nasional Berhad (TNB) to include such malls and properties to be granted the same discount so that, they (shopping malls, retail shoplots, independent buildings and/or properties with retail businesses) can pass the percentage of discount to their tenants,” the association said.
Furthermore, it requested a 50% discount for the next six month irrespective of the kilowatt usage a month.
Apart from that, the association also requested a suspension or deferment EPF contribution for a period of six months from April 2020 to help businesses with cash flow and costs instead of a 10-14 day extension as announced.
“(This is) instead of a monthly or a mere 10-14 days extension as announced on a periodic basis, which is preposterous and not workable,” it said.
The MRA explained that retail is a high fixed-cost business with electricity bill and rental payments being two of three top concerns.
Businesses across the country are having difficulty staying afloat, with no revenue but have a lot of expenses to pay, it said. “In this unprecedented crisis, most, if not all, will have to take some sort of sacrifice,” the MRA added.
Retail is a high fixed-cost business with electricity bill and rental payments being two of three top concerns. – REUTERSPIX
