The Malaysian Insight

CHINESE restaurant owners have had their hopes of business recovery during this year’s lunar new year celebrations crushed by the reimplementation of the two-week movement-control order (MCO) from last Wednesday.

They fear the January 13-26 MCO will be extended to cover the Chinese New Year period, which falls on February 12.

Under the MCO – which covers Selangor, Sabah, Penang, Johor, Malacca and the Federal Territories of Kuala Lumpur, Putrajaya and Labuan – restaurants are not allowed dine-in services.

Patrons can only buy takeaways, which means there will not be a huge demand for new year reunion dinners and feasts at these restaurants.

Pan Malaysia Koo Soo Restaurants and Chefs Association president Wong Teu Hoon told The Malaysian Insight that Chinese restaurants were hoping for a rebound in the new year but any optimism was dashed by the second MCO.

“We were looking forward to a business rebound in the new year, but the situation is getting worse, and no one is surprised that the MCO has been reimposed.

“Yet it’s still disheartening and Chinese restaurants will once again possibly face zero income,” Wong said.

With less than a month to go until the lunar new year celebrations, he said restaurants have now started preparing meal packages to deal with the lockdown.

“We know that it won’t be as good as last year but we hope it would at least help with our income. Now, there’s no use hoping,” he said.

Wong said businesses have learnt, after the losses suffered from the previous rounds of MCO last year (from March to May), not to stock up too much to avoid further losses.

The period during the lunar new year festivities is typically the peak period for big Chinese restaurants while business in March and April is generally slower.

“We need to see by May if the situation is better, if wedding banquets are allowed by that time.

“We still have a little hope for the unlikely scenario that the government loosens restrictions and lets restaurants ply their trade,” Wong said.

For now, he said, they can only focus on doing takeaways.

“Frankly speaking, takeaways don’t help much for big restaurants. At most you can only make 30% of your usual income, which will only cover expenses,” he said.

Restaurant operators are also in a dilemma as they need the income but staying open also means risking infection among the staff, he said.

“If we don’t open, then we can’t pay our debts, salaries… our only choice is to stay open and hope for the best.”

Aid appeal

Meanwhile, Malaysia-Singapore Coffee Shop Proprietors’ General Association appealed to the government through Klang MP Charles Santiago for aid, including an exemption of licence renewal fees and rent subsidies.

Association president Ho Su Mong said the appeal is to prevent more small and medium businesses in the sector from closing permanently.

“The government should step up and take care of the small businesses. Especially in terms of rent, it can take up 30-35% of monthly expenditure. With dine-in banned, it will be difficult to sustain.

“In the city, rent could be anywhere between RM10,000 and RM35,000 a month. How do you survive during these times? If businesses decide to close, then it will just lead to more unemployment.”

Ho said such measures to assist businesses should run for the next six months and be reviewed later.

Last Monday, Prime Minister Muhyiddin Yassin addressed the nation, where he said the MCO would be reimposed in six states – Selangor, Penang, Malacca, Johor, Sabah, and the Federal Territories of Kuala Lumpur, Putrajaya, Labuan, the worst hit by Covid-19.

Pahang, Perak, Negri Sembilan, Terengganu, Kelantan, Kedah and Sarawak will be under conditional MCO, while Perlis will continue to be under the recovery MCO.

On top of which, the government has also announced a state of emergency until August 1, which Muhyiddin said is to bring the pandemic under control within the borders. – January 18, 2021.