MCO: Restaurants severely hit as business plunges more than 80%

PETALING JAYA: Restaurants across the country have seen their business plunge by more than 80% since dining-in was disallowed under the movement control order (MCO), which was enforced on March 18.

Malaysian Indian-Muslim Restaurant Owners Association president Datuk Jawahar Ali said business was already declining when the Covid-19 outbreak began to take hold on Malaysia in January.

“Now, with the MCO, we have been hit really hard,” he told theSun yesterday.

“However, we have no choice but to follow the government’s instructions.”

Under the MCO, restaurants are only allowed to provide takeaways.

Despite the reduction in business, Jawahar said they still have to pay fixed costs such as salaries, accommodation for workers and rental.

He said with the revision in operating hours, restaurant owners would now have to discuss the issue of salary with workers.

“We hope to come up with an amicable solution,” he said.

Malaysian Indian Restaurant Owners Association president T. Muthusamy said most restaurants are operating at only 15% of their normal business.

However, for restaurants located in areas where many essential services are still operating, business is slightly better.

Muthusamy said food served in Indian restaurants are usually made to order so they are fresh as this would reduce wastage.

Like Jawahar, Muthusamy’s main complaint was the fixed costs Indian restaurants have to pay despite the slowdown.

“For instance, the power bill accounts for a big chunk of the fixed cost. We hope the government will give us a 50% discount on our electricity bills,” he said.

Muthusamy said he met Human Resources Minister Datuk M. Saravanan yesterday to discuss the problems faced by restaurant businesses.

“But he (Saravanan) cannot make a unilateral decision so we have to talk to other ministries as well,” he added.

He urged the government to lighten the criteria on loans for restaurants. Otherwise, many would be forced to close down.

Restaurant owner K. Kanan said he has been forced to keep one of his two outlets closed since the MCO was enforced.

“With so few people working, it does not make sense to keep the outlet in the Golden Triangle open. But our outlet in Klang is still operating although business is very bad,” he said.

He has 15 foreign workers, but due to the lockdown he cannot send them home to India.

“In any case I’ve decided to keep them because it’s not easy to get foreign workers,” he added.

Kanan also said he was preparing to restart the business once the MCO is lifted.

“So, for now we’ll just have to bear the costs.”

He wants the government to urge landlords to reduce rentals by 50% or more since they have been given a six-month deferral on loan repayments.

“This will go a long way in helping us get back on our feet,” he added.

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