- Group’s factory operations will remain closed until 1 August 2021 due to government orders
- Substantial backlog of orders will keep factory busy until yearend
Central Global Berhad (Central Global or Group), a producer of industrial masking tapes and label stocks as well as general building contractor, will continue to keep a tight rein on cash flow in order to ensure business sustainability following the government’s decision to lengthen the extended movement control order (EMCO) in certain areas of Kuala Muda, Kedah where the Group’s factory is located by a further two weeks to 1 August 2021.
Central Global’s factory, which produces masking tapes and label stocks, has been closed since 5th July 2021 given its location in Kuala Muda which is currently under the EMCO. The factory employs almost entirely locals, with several among the 170 employees having been with the Group for more than four decades.
Central Global executive chairman Dato’ Faisal Zelman said: “We have always been cautious about the outlook for this year given the uncertainties of further COVID-19 outbreaks and while we will continue to tap into opportunities arising from a more fragmented regional competition landscape and the sporadic local supply-chain disruption, we are also mindful of the risks.”
“We have backlog orders to fulfill which will keep the factory busy until year-end, but operations have been affected due to the EMCO. We are consistently in discussion with the authorities despite of the lockdown measures which has been imposed in the EMCO zones. We managed to obtain permission to operate on a partial basis being categorized as an Essential Industry (Packaging) during the period of the MCO 1.0 and we hope that the government will consider applying similar regulations for the current EMCO as well. At the same time, we want to reassure all stakeholders that the management will do all it can to ensure that business sustains and maintain operational efficiency and quality.”
Central Global has two scheduled meetings annually to review the Group’s manufacturing operations’ internal controls and risk management under a risk management framework to mitigate business and operational risks. The Group’s lean manufacturing process ensures that costs are kept under scrutiny while driving productivity and quality through employee suggestion programs and reward schemes.
“We will monitor the situation and continue to adhere to all standard operating procedures as laid out by the National Security Council and Ministry of Health guidelines to ensure the safety and health of employees and vendors. In the meantime, we have to manage our customers’ expectations in fulfilling their orders,” Faisal concluded.
For more information, please contact Hakim J. Munif at +60 12-318 5410 or h.juraimi@swanconsultancy.biz.