PETALING JAYA: It will be some time more before the owners and operators of bars, pubs and night clubs pop the champagne.
While businesses in most other sectors have been allowed to resume operations under the recovery movement control order (RMCO), the door remains shut for operators of nightspots.
But the fact that they are big contributors to the Malaysian economy, being huge crowd pullers by themselves, does little to convince many that the time has come to lift the restrictions on them.
As economist Dr Barjoyai Bardai (pix) points out, saving lives supersedes everything else, including the economy.
“Foreign tourists make up a big number of patrons frequenting the nightclubs and entertainment scene, but with international borders still closed, I do not think it will affect the economy much if we continue restricting them,” he told theSun yesterday.
“As of now, the economy is still contracting. It was only in July and August when it was in a process of recovery, and hopefully by next month we will see some improvement,” he said.
“The agriculture industry is recovering, and so are the manufacturing and services sectors. The tourism sector is also important, but the risk is greater if we open everything up,” said Barjoyai, citing Thailand as an example.
The tourism industry alone accounts for almost 20% of Thailand’s gross domestic product, but the ninth most visited country in the world (38.2 million tourists in 2019) has ruled out reopening its borders until 2021.
“Even Thailand, which relies so much on tourism, has decided to keep its borders closed. They are more careful than us. We have done so well to keep the pandemic in check, so we should let things remain as they are. The government has prioritised lives first, and that is the right decision,” he said.
Malaysian Food and Beverages Executives Association president Hisham Tan Abdullah said while these outlets may feel the full brunt of the economic fallout, the nature of their business makes it difficult for them to reopen.
“These outlets are prohibited because they do not serve food, only alcoholic beverages. So for them to ensure adherence to the standard operating procedure will be a challenge.
“For those involved in the nightclub scene, many of them who have applied for their licences have not got it approved, so cashflow is not going to be easy. Likewise the suppliers who have been in the business for a long time,” Tan said.
“They have to alter their business model. Perhaps look into serving non-alcoholic beverages. Nobody knows when this (pandemic) will be over, so diversifying their business could be the next step,” he said.
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