Malaysia

More joblessness, poverty when economy reopens as per NRP, warns MTUC

Penang chapter’s K. Veeriah takes Bank Negara, MoF to task over lack of automatic loan moratorium during current lockdown

Updated 4 years ago · Published on 20 Jun 2021 6:00PM

More joblessness, poverty when economy reopens as per NRP, warns MTUC
It is not viable for non-essential manufacturers to stay in business without restarting production for another six months, says the Penang MTUC secretary. – The Vibes file pic, June 20, 2021

by Arulldas Sinnappan

GEORGE TOWN – By the time all economic sectors reopen according to the National Recovery Plan (NRP) timeline, more people will be left jobless and more families will fall under the poverty line.

Penang Malaysian Trades Union Congress secretary K. Veeriah told The Vibes that it is not viable for non-essential manufacturers to stay in business without restarting production for another six months.

“They will prefer to close their operations to prevent running into huge financial losses.

“When this happens, our fear is that most of these people will lose their jobs. We also fear that more B40 families will slide further down the poverty line.”

He was responding to news that more than 600,000 households, or over two million people, have moved down from the M40 group to B40 due to the pandemic.

There is an immediate need for the government to provide financial aid to ease the people’s burden, especially given the rise in food prices and other bills, he said.

Inflation has caused the price of food to increase many times over. There has been no effective monitoring of the prices of goods by the relevant authorities, affecting the jobless, those with a reduced salary, and daily wage earners.”

Veeriah blamed Bank Negara Malaysia and the Finance Ministry for the lack of an automatic loan moratorium during the current Covid-19 lockdown.

“We cannot accept that the Finance Ministry has no power to compel banks to implement a moratorium. How did the ministry get it done for the first movement control order (MCO 1.0) that took effect in March last year?

“Where is their moral duty? The banks should feel ashamed for not showing their social responsibility in these difficult times.”

It has been reported that more than 600,000 households, or over two million people, have moved down from the M40 group to B40 due to the pandemic. The situation is even more dire for those already in the low-income group. – The Vibes file pic, June 20, 2021
It has been reported that more than 600,000 households, or over two million people, have moved down from the M40 group to B40 due to the pandemic. The situation is even more dire for those already in the low-income group. – The Vibes file pic, June 20, 2021

On June 15, Prime Minister Tan Sri Muhyiddin Yassin unveiled the NRP involving transitions in the MCO imposed to stem Covid-19.

“The first indicator is community spread, based on daily cases. The second is ICU bed capacity. The third is the percentage of the population that has been fully vaccinated.”

He said Phase 1 involves a full lockdown, which is currently in force, and that the government will consider moving to Phase 2 only when daily coronavirus cases fall below 4,000.

“This is when the healthcare system is no longer at critical capacity, the ICU bed capacity returns to average, and 10% of the population has been fully vaccinated.

“The economy will be reopened in stages, with 80% of employees permitted on the premises. The positive-list approach will be continued, which means only certain sectors are allowed to operate.

“In Phase 2, social activities, and interstate and inter-district travel are still prohibited.

“In Phase 3, the focus will shift from the positive list to the negative list. This means that all economic activities will be permitted except for those on the negative list.”

The Pagoh MP said the transition to Phase 3 will occur when three indicators – daily Covid-19 cases fall below 2,000, the healthcare system is at a “comfortable” level, and 40% of the population has been fully inoculated – have been met.

“It is estimated that this can be attained by early August.

“In Phase 3, all economic sectors are allowed to operate except those on the negative list, like activities that can cause an increase in infections, or involving crowds.

“In Phase 3, social activities, including education and sports, can resume in stages.”

The move to Phase 4 happens when daily infections fall below 500, the healthcare system is at a “safe” level, and 60% of the population has been fully vaccinated, he said.

“Based on the National Covid-19 Immunisation Programme, this can be achieved as early as October.” – The Vibes, June 20, 2021

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