Bolstering alliances for a prosperous

EU-Malaysia partnership
#EUMYstrongertogether

23rd January 2021

Dear Members of EUROCHAM.

SUMMARY OF MEETING WITH MITI, 22nd January 2021

EUROCHAM Malaysia represented by our CEO, Mr Sven Schneider, was invited to a very important
and urgent meeting at the Ministry of International Trade and Industry on the evening of 22nd January
2021.

The Secretary General of the Ministry of International Trade and Industry (MITI), Dato’ Lokman Hakim
Ali, chaired the meeting and informed us that the Ministry of Health has made a clear stand on the
matter of a complete shutdown of the economy. With 99 Covid-19 clusters related to manufacturing
out of more than 300 in the whole country, MOH believes that the manufacturing sector is the main
source of infections. Construction was also mentioned, but since not under the purview of MITI, we
did not discuss the sector in detail. Should the infection rate not decrease, the Malaysian government
will announce a shutdown/strict lockdown immediately after 4 February 2021. This is the current
situation we are facing and MITI is appealing to all companies, foreign and local, to join the effort of
reducing infections, breaking the chain, to keep the economy open for business.

Since in particular, dormitories and related activities (transportation, social activities) were identified
as problems, while manufacturing sites itself usually demonstrate sufficient compliance, MITI
brainstormed together with the present chambers of commerce a few potential measures. While we
are awaiting more information from the Ministry and since time is of the essence, we share the
preliminary outcomes here with you:

1. Companies to assign at least 1 HR person to manage and coordinate foreign workers and/or
workers staying in dormitories. The key here is to minimize community movement, social
activities and thereby compliance of MCO SOP. Often workers in dormitories were found not
to practice SOP compliance and engage unnecessarily in extensive social activities in or
outside the dormitories.

2. Companies are requested to also take responsibility in cases where foreign workers
management or housing have been outsourced to employment agencies. There have been
cases, where poor housing conditions or transportation compliance by the agent has led to
rising infections. Companies sometimes are not aware, but the government encourages to
strengthen communication and coordination with employment agencies and outsourcing
partners for the benefit of all.

EU-Malaysia Chamber of
Commerce and Industry
Registration No. 199301008733 (263470-U) O + 60 3 - 2162 6298
Suite 10.01, Level 10, Menara Atlan, F + 60 3 - 2162 6198
161B Jalan Ampang, 50450 E enquiry@eurocham.my
Kuala Lumpur, Malaysia W www.eurocham.my
 Bolstering alliances for a prosperous
EU-Malaysia partnership
#EUMYstrongertogether

3. Companies are requested to establish basic quarantine spaces at their dormitories to ensure
that suspected cases, close contacts and confirmed Covid-19 cases can be
isolated/quarantined immediately and reduce risk of further spread. Any immediate and short-
term measures are welcomed to reduce infections.

4. Workers staying at home with family, may also be offered to stay at company quarantine
facilities, if they and close contacts are suspected or tested positive.

5. In the context of transportation, companies have to ensure social distancing and thereby
reduction to 50% of capacity of each vehicle is suggested. This will also be reflected in official
SOPs, since we discovered yesterday an inconsistency in the current SOPs.

6. Companies will also have to check with their respective supply chain partners for compliance.

7. There was also a discussion regarding testing capacity and contact tracing. There may be
updates on this matter during the next few days as well.

We understand that this must seem as another major challenge and potentially costly changes may
have to be made. Nonetheless, EUROCHAM encourages its members to do whatever you can to
reduce infections, break the chain and keep the economy open.

Thank you and stay safe!

EU-Malaysia Chamber of
Commerce and Industry
Registration No. 199301008733 (263470-U) O + 60 3 - 2162 6298
Suite 10.01, Level 10, Menara Atlan, F + 60 3 - 2162 6198
161B Jalan Ampang, 50450 E enquiry@eurocham.my
Kuala Lumpur, Malaysia W www.eurocham.my