When the first known infections from Covid-19 were discovered in China, FLAVARIS (M) SDN BHD had met their first challenge. China’s lockdown had caused most of the raw materials imported by the factory from China to face procrastination. The items received were generally beyond the delivery duration as usual. ‘Costing is important in a business, purchasing from a new supplier such as Europe will enhance the costing of the factory.
Movement Control Order
FLAVARIS had to deal with the problem by finding another source for raw materials after getting the agreements from the customers. Insufficient raw materials might affect the operation of the factory. Covid-19 has caused a dramatic shortage in the supply of face masks. Price rising in medical masks is also a significant challenge faced by Flavaris. During the first phase of the Movement Control Order in Malaysia, the price of face masks had increased to 100%.
To ensure the hygiene of products, workers are required to change the protective equipment once they enter the production line from outside. Although there was high demand for products during the pandemic, the profit earned was just enough to purchase the face masks, hair net, sanitizer, and shoe covers for factory use. Additionally, the employer was also in charge to pay the fee of the PCR Test for their employees.
Manufacturing Sector
On 27 July 2021, Johor Government has attributed the main causes of the state’s rise in Covid-19 cases to the manufacturing sector and social activities. FLAVARIS once again met the biggest challenge that brought from pandemics to their business. The number of workers in the factory was reduced from 30 people to 15 people to decrease the risk of infection.
Workers took a rotating shift working in the production line and this had affected the production speed. Nevertheless, salary included KWSP was still needed to pay for the workers who reared at home as they cannot work from home since it was impossible to pack the products at home.
