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Toyota and Honda temporarily cease production in Malaysia

KUALA LUMPUR: Japanese carmakers Toyota Motor and Honda Motor have temporarily stopped operations at several plants in Malaysia due to the enforcement of the second phase of the Movement Control Orders (MCO 2.0).

According to a report by Nikkei, Toyota halted its two assembly plants on Thursday and it was still unknown when the facilities will reopen.

Honda was also suspending its production at two factories on Wednesday as each of the plant produces two-wheelers while the other makes four-wheel vehicles.

It was reported that the Japanese automaker had plan to freeze its operations until January 26, when the lockdown is due to be lifted.

It was learned that the move was enforced to contain the Covid-19 infection in the country as Malaysia had been experiencing a third wave of the pandemic since September last year.

Perusahaan Otomobil Kedua Sendirian Bhd (Perodua), which is back by Japanese car company Daihatsu Motor, had also halted its production on Thursday.

Initially, auto assemblers included in the list of essential industries, until officials pulled the exemption at the last minute Tuesday evening.

Auto production was also halted as well during the lockdown implemented in March 2020.

The report said Malaysia is the third largest auto producer in Southeast Asia, behind Thailand and Indonesia.

Output during the January-November period of last year fell 19 per cent to about 430,000 vehicles.

Selangor, Penang, Melaka, Johor, Sabah, Kuala Lumpur, Putrajaya and Labuan has be placed under the MCO beginning midnight Wednesday (Jan 13).

The MCO 2.0 are enforced due to the spread of Covid-19 which has been recording four-digit daily cases of late.

Prime Minister Tan Sri Muhyiddin Yassin said the MCO would be in effect for two weeks until January 26.

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