The Movement Control Order (MCO) which was enforced at the start of June forced many business sectors to close. And the automotive industry was particularly hard hit, with allowances to operate only given to accommodate routine vehicle maintenance - only major repair works in the case of territories under enhanced MCO protocols. 

UMW Toyota Motor (UMWT) president Ravindran K confirmed that the company's supply chain and logistic efforts have come to a halt following the continued closure of all Toyota and Lexus showrooms in Malaysia. 

“We still have an encouraging order bank for the various models. Nevertheless, we are hopeful that the restrictions of the lockdown can be eased to allow us to operate in a limited and safe way. Naturally, we will abide by all Standard Operating Procedures, as we have during the past year,” said Ravindran. 

Since no business can be conducted, showrooms are unable to deliver new cars and take on new stock. This causes a ripple effect that goes all the way to UMWT's manufacturing operations and those of its suppliers. And since Malaysia is part of a regional network that Toyota is heavily invested in, a domestic lockdown could present some problems on a larger, international scale. 

Deputy chairman Akio Takeyama echoed these concerns, indicating that ongoing restrictions may have an effect on Toyota's global supply chain that relies on some of UMWT's subsidiaries for the export of automotive components. 

"If this situation continues for long, we are concerned that our overseas customers may look for new suppliers as they cannot have their own production delayed due to shortage of parts from Malaysia. This could have an impact on Malaysia's economy as a whole if export business declines. 

For the time being, UMWT continues to accept bookings online via the official Toyota and Lexus websites. The company is banking on Malaysians to capitalise on the SST exemptions which have been extended until the end of 2021. 

"“We encourage customers to make their bookings online as we can then plan production at our two assembly plants to minimize waiting time when the restrictions are lifted, to enable customers to enjoy the current financial incentives," said Ravindran.