BARS and pubs should not be victimised in this time of Covid-19, according to Heineken Malaysia Bhd managing director Roland Bala, regarding the freeze on new liquor licences in place at this time.
“Why victimise them on this?” said Bala at a briefing today, pointing out that these were businesses as well that are doing what they can to recover after closing during the movement control order (MCO).
The freeze was put into place on June 2, when Kuala Lumpur City Hall placed a freeze on any applications for new liquor licences, and this has caused concerns among bars and pubs, especially those who are looking at licences nearing expiry.
Bala noted that the Pub, Night Club and Bar Association, among others, had sent memorandums to local councils, and that there is some progress from there.
“I take some level of comfort that this is specific to a few municipalities, namely the federal territories and Johor at the moment, and not a nation wide blanket.”
“Common sense will prevail at some point when the full impact of Covid-19 is seen,” noted Bala, adding that the brewery sector itself has created 61,000 employment opportunities.
The briefing today was about Heineken’s results for the quarter ended June 30, which saw the brewery taking a 51% drop in revenue for the quarter due to its compliance with the MCO, which saw 46 days of operation suspensions for the company.
The 46 days of suspension also saw the company recording zero revenue for the duration. This resulted in a net loss of RM18 mil for the quarter, something Bala noted is “a first in living history.”
At the end of the trading day, Heineken’s shares were last done at RM22, down 20 sen, with 211,500 shares traded. – Aug 14, 2020
