Malaysia

MCO 2.0 not as severe to economy: Tok Pa

Datuk Seri Mustapa Mohamed says government’s current pandemic response is ‘realistic’, cutting daily economic losses by as much as 20% from previous lockdown

Updated 5 years ago · Published on 03 Feb 2021 11:03PM

MCO 2.0 not as severe to economy: Tok Pa
Datuk Seri Mustapa Mohamed says that the government accepts that Covid-19 will be around for a while more, and the economy must gradually reopen. – File pic, February 3, 2021

by A. Azim Idris

KUALA LUMPUR – Malaysia is losing an estimated RM600 million to RM700 million daily thanks to the economic impact of the current movement control order (MCO), said Datuk Seri Mustapa Mohamed.

The minister in the Prime Minister’s Department in charge of economic affairs said this was far lower than the estimated RM2.4 billion losses a day during the first MCO in March last year.

He said the reduced losses incurred were due to the government taking a different approach to address the Covid-19 pandemic.

“We (the government) have accepted that Covid-19 will be with us for the moment before all Malaysians are administered with vaccines,” he said during a special interview with Astro Awani this evening.

“Therefore, the government’s approach in terms of philosophy has shifted towards balancing lives and livelihoods.”

He said the government last year had given more emphasis on public health to contain the pandemic.

“Previously, (we see infections) in the two or three figures to the four figures now. We are making efforts to reduce the numbers with the help of the Health Ministry and other authorities. we know that (Covid-19) will be here to stay for a certain amount of time," he said.

“Therefore, we need to find a method that is more realistic because before this we read reports of RM2.4 billion in daily losses.

“Now, economic losses have reduced to somewhere in the region of RM700 million a day. That is a big difference.”

He added that this meant that total daily losses had been trimmed by as much as 20%, compared to the roughly two-month lockdown from March to May last year.

“The government has now allowed some sectors to operate as the government is incapable of continuing aid provisions (to certain businesses) as the country’s income has been affected,” he said.

However, he said under the circumstances, the government has done its best with initiatives such as the RM15 billion Malaysian Economic and Rakyat’s Protection Assistance Package (Permai), and wage subsidies amounting to RM1 billion with an added RM500 million stimulus, among others.

He added that these ensured that those who are bound to lose their jobs could sustain their livelihoods.

“But in the long term, we have no choice but to be realistic in realising that Covid-19 will be with us for a while, and therefore we should reopen up our economy,” he said.

“This is currently happening, but will definitely be subject to standard operating procedures (SOPs) set by the Health Ministry.” – The Vibes, February 3, 2021

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