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Don’t discriminate against breweries, says business group

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MICCI says Malaysian brewers contribute RM2.2 billion in duties and the industry’s supply chain sustains 60,000 jobs.

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MICCI executive director Shaun Cheah says alcoholic beverages should be classified together with other sugary and caffeine beverages. (Reuters pic)

PETALING JAYA:
There should be no discrimination by the authorities when it comes to deciding which sectors should be allowed to operate during the total lockdown, the Malaysian International Chamber of Commerce and Industry (MICCI) says.

MICCI executive director Shaun Cheah said while the chamber condones responsible consumption of alcoholic and high sugar caffeine beverages, there should be no “discrimination in the matter of definition or to sentiments”.

He was speaking a day after senior minister for security Ismail Sabri Yaakob announced that breweries will have to shut down, although they had earlier been given the go-ahead.

“The total lockdown and prolonged pandemic have already been hard on a large segment of the rakyat,” said Cheah. “A little indulgence goes a long way in these stressful times.

“Shouldn’t they (alcoholic beverages) also be classed as strategically essential on top of being already classed as ‘essential’ under beverages together with other sugary and caffeine beverages (like bottled soft drinks),” he said, adding that the government imposed a sugar tax as it was aware of the health risks of excessive sugar intake.

A spokesman for the international trade and industry ministry (Miti) previously confirmed that breweries had been allowed to operate as they fell under the beverages sector listed by the National Security Council (MKN).

However, Ismail said yesterday that MKN had decided that breweries would have to shut down.

He said while operating permits had been granted to factories manufacturing food and beverages during the lockdown, this approval is only for factories producing essential items – and breweries were not on the list.

Cheah pointed out that breweries operate with minimal workforce as they are highly automated, as opposed to most other factories which are heavily dependent on labour.

He said the government’s “much-needed” source of funds for the recently announced Pemerkasa Plus programme and various other aid packages comes from the economic activities of the Malaysian industry, adding that Malaysian brewers contribute RM2.2 billion in duties.

He also said the industry’s supply chain sustains 60,000 jobs.

Noting that the semiconductor industry was initially not listed as an essential service under the Prevention and Control of Infectious Diseases Act, Cheah said MKN put the sector on the list due to the “importance of the industry’s economic contribution to the country’s Treasury and position in the world supply chain”.

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