PUTRAJAYA – The government’s decision to keep the economy open on a targeted basis during the third movement control order (MCO 3.0) is to protect certain groups, especially the vulnerable, as well as small and medium enterprises.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the implementation of MCO 3.0 is based on the standard operating procedures adopted during MCO 2.0 earlier this year, allowing economic activities to continue.
Social activities are prohibited in view of the current Covid-19 case numbers, he told a press conference here today.
“Based on our experience with the previous implementations of the MCO and the latest data, the government has found the following: firstly, shutting down the economy is detrimental to groups that are vulnerable.
“Secondly, if sectors such as manufacturing are not operating, it will have a lasting impact on key sectors of the economy.”
He said MCO 1.0 resulted in RM2.4 billion in losses a day, with the unemployment rate hitting 5.3%, or 826,000 people laid off, in May last year.
“It is the highest unemployment rate since the commodity crisis in the 1980s. If MCO 1.0 is reimplemented, it is estimated that more than a million Malaysians will lose their jobs.
“What is more worrying is that the unemployment rate is uneven. It is more focused on the self-employed, youth, women and low-skilled workers.”
He said 2.8 million people, comprising the self-employed, micro-SMEs and small entrepreneurs, will be most affected by a reduction in income.
Compared with the first lockdown, he said, unemployment in March stood at 4.7%, or 753,000 individuals, when MCO 2.0 was enforced.
“It should be noted that we are still far from the unemployment rate of 3.7% before the Covid-19 outbreak in the country, in 2019.”
He said an automatic bank loan moratorium will not be implemented this time around.
“During MCO 2.0, there was also no moratorium given as the economy was allowed to open.”
Nevertheless, he said, the affected groups and companies will continue to receive help from banks, just like during MCO 2.0.
Yesterday, Bank Negara Malaysia said an automatic loan moratorium will not be implemented for MCO 3.0. – Bernama, May 12, 2021
