Azmin Ali Says Businesses Can Sue States That Do Not Follow The CMCO
He said the state governments' actions were "not founded on lawful authority".
By May Vin Ang — 05 May 2020, 12:13 PM
State governments may face lawsuits from industry players if they stop businesses from resuming under the Conditional Movement Control Order (CMCO), warns Datuk Seri Mohamed Azmin Ali
According to New Straits Times, the International Trade and Industry Minister said the government was aware that several states decided against implementing the CMCO, which began yesterday, 4 May.
"Their actions are not founded on lawful authority and are contrary to the policy of the Federal Government, all the more so in view of the fact that the Federal Government's policy has already been made into law and is enforceable throughout the country," he said in a statement yesterday evening.
The government has gazetted the CMCO under the Prevention and Control of Infectious Diseases Act 1988 (Act 342) in an effort to curb the spread of COVID-19, he explained
According to The Star, Azmin added the authorities should also take note of the views by various industry associations.
He said the Federation of Malaysian Manufacturers and the Malay Chamber of Commerce have insisted there should be no direct restrictions from the state governments to stop companies from wanting to resume operations from 4 May.
"Should the state governments refuse to cooperate in implementing Act 342, which has been gazetted into law and enforceable throughout the country, the state governments may face the possibility of legal action from various parties, particularly industry players."
Azmin also stressed that the government's plan to reopen most economic sectors under the conditional MCO was not done hastily
He said the decision was taken with utmost care, caution, and responsibility with data and findings by his own ministry, the Ministry of Finance, Bank Negara Malaysia, and Khazanah Nasional.
The findings, he said, were then presented for discussion with the Menteris Besar and Chief Ministers at a National Security Council's meeting on 28 April, and standard operating procedures (SOPs) were already handed out to all the state governments on 2 May.
"Based on the discussions during the meeting, the state governments realised that should the MCO continue until June 2020, the cumulative loss of the national income is estimated to reach RM146 billion or a shortfall of 10.3% of the GDP," he said, as quoted by Bernama.
"This would wipe out the economic success that has been achieved for the last four years. In this regard, the meeting agreed to reopen the economic sectors during the CMCO beginning 4 May."
Azmin urged state governments to co-operate in complying with the Federal Government's decision to revive the economy
"This decision takes into account the importance and imperatives of the health and well-being of the rakyat and the need to regenerate the economy," he said.
"The government is confident that we, as a team, will succeed in winning the 'war' against the COVID-19 pandemic."
