Just recently the Malaysian Government announced the extension of the conditional movement control order (CMCO) will be extended for another four weeks until June 9. With the number of extensions to the MCO not coming to an end yet, businesses aren’t sure that they’ll be able survive throughout this period.
We’ve already seen the impact of the coronavirus pandemic on the travel and tourism industry with 8 hotels in Malaysia already announcing their permanent closure with many more expected to come.
Unfortunately, other industries are also feeling the impact of the pandemic and a number of companies from different industries such as fashion to F&B have announced their permanent closures.
1) Hard Rock Cafe, Kota Kinabalu
The one and only Hard Rock Cafe in Sabah has closed down for good effectively on 30th April, 2020. The cafe that started its operations on April 1, 2015 was a popular spot among tourists providing diners and patrons with live band performances while they enjoyed their meals and drinks.
Hard Rock Cafe, in a statement, stated that the company had temporarily closed all of its cafes in Malaysia during the movement control order (MCO) but Hard Rock Cafe Kota Kinabalu will not be reopening even after the MCO is lifted.
Fashion chain Esprit Holdings announced the closure of all 56 stores in Asia outside mainland China. The stores in Singapore, Malaysia, Taiwan, Hong Kong and Macau will be shut by June 30 as it tries to meet the challenges faced by the coronavirus pandemic.
Esprit said the decision was made as part of its effort to cope with the challenges posed by the coronavirus pandemic. Additionally, the company’s sales had already been slumping in the region with Esprit’s retail sales in Asia falling 44.2 percent in the nine months to March 31.
3) TAL Group
The 70 year-old TAL Group announced it will cease operations of its two Malaysian factories, Pen Apparel in Penang (PAP) and Imperial Garments (IG), in Ipoh that employs 2,600 people, of which 30% are local.
It was reported that in a letter to employees, the company’s senior vice-president for manufacturing, Florence Lai, cited the Covid-19 pandemic as having adversely impacted leading garment manufacturers.
4) Blu Inc Media
Well known magazine publisher Blu Inc Media Sdn Bhd, which is the company behind household magazines such as CLEO, Cosmopolitan, Her World, EH! and Female, has shut down effectively on April 30.
In a letter to the employees sighted by theSun, CEO Datin Azliza Tajuddin explained that the business has already been under a tremendous challenge from digital disruption over the past few years and although they had made increasing investments into digital capabilities, it wasn’t enough to sustain the business.
5) Esquel Group Malaysia
Esquel Group Malaysia Sdn Bhd (EGM), a Hong Kong-based textile and garment manufacturer, which was unprofitable since 2015, will cease operations effectively on June 12.
The matter came to light after a letter dated April 15 was issued by the company’s general manager Edward Ho to its employees, informing them about the factories’ closure. However, all hope is not lost as the Penang government, through its Penang Career Assistance and Talent (CAT) Centre, is offering help to 500 employees of Esquel.
6) Restoran Kok Thai, Ipoh
A popular seafood restaurant among both locals and tourists located at Bandar Baru Medan Ipoh appears to have closed for good.
According to Malay Mail who visited Restoran Kok Thai, noticed banners announcing that the space is for rent or sale were pasted on its walls and shutter. A restaurant staff, who only wanted to be known as Ling, confirmed its closure.