Economics Local

Covid-19: States have no power to ignore the CMCO

Azmin is reminding state governments that they do not have the legal authority to not implement the CMCO.

Written by TheMole

KUALA LUMPUR — May 4, 2020: Minister of International Trade and Industry Datuk Seri Azmin Ali has asked all states to comply with the conditional movement control order (CMCO) because failure to do so may expose them to possible lawsuits.

This is because the state governments do not have the legal authority not to comply with the CMCO which has been gazetted under the Prevention and Control of Infectious Diseases Act.

In his statement today, Azmin further refuted claims that the federal government had acted without consulting the mentri besar and chief ministers and that the standard operating procedures had been given a couple of days ago to them at their requests.

There was also consensus on the decision at the National Security Council meeting on April 28 chaired by Prime Minister Tan Sri Muhyiddin Yassin.

Based on the discussions, the state governments realised that should the MCO continue until June, the cumulative loss of the national revenue would be RM146bil or a shortfall of 10.3% of the Gross Domestic Product, pointed out the statement.

It was with this in mind that the meeting agreed to restart various economic sectors beginning today.

According to Azmin, the decision to restart the sectors concerned was made after consultations with the Finance Ministry, Miti, Bank Negara and Khazanah Nasional.

On May 1 Muhyiddin announced that the CMCO would be in place from May 4, allowing for a large number of economic and social activities to restart.

But these activities are subject to strict conditions and enforcement of stringent SOPs.

Additionally. Azmin said the state governments must take note of the views of various bodies, including the Federation of Malaysian Manufacturers and the Malay Chamber of Commerce, which made clear they would not stop companies wanting to resume operations from today.



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