Business

MCO will not majorly impact economy overall: lecturer

Low performance from six states under movement control order can be offset by relaxed rules in other areas

Updated 5 years ago · Published on 12 Jan 2021 1:00PM

MCO will not majorly impact economy overall: lecturer
While the six main contributing states to the nation’s economy will effectively be under lockdown until January 26, relaxed rules in other states will drive normal business activity and reduce the impact of the movement control order on the country’s income. – Bernama pic, January 12, 2021

KUALA LUMPUR – The implementation of the movement control order (MCO) in six states for 14 days beginning tomorrow is not expected to have a significant impact on the economy, compared with the four phases of MCO imposed last year.

Putra Business School senior lecturer Assoc Prof Ahmed Razman Abdul Latiff said besides incorporating some improvements, the government has made thorough preparations in enforcing the MCO in several states to curb the spread of the Covid-19.

“The MCO will involve six states namely Penang, Selangor, the Federal Territories (Kuala Lumpur, Putrajaya and Labuan), Melaka, Johor, and Sabah, which are the main contributing states to the country’s gross domestic product.

“The economic sector will still be affected by the re-implementation of MCO, but overall impact will be reduced as other states can still conduct their business activities as usual in compliance with the stipulated standard operating procedures (SOPs),” he said when appearing as a guest on Bernama TV’s Ruang Bicara programme last night.

Six other states – Pahang, Perak, Negri Sembilan, Kedah, Terengganu and Kelantan will be placed under conditional MCO while recovery MCO will be enforced in Perlis and Sarawak for the same period.

Meanwhile, Ahmed Razman said the pandemic has also opened up more opportunities for companies to explore new business opportunities, which will be able to boost their income.

“This will also contribute to national income during this difficult time,” he added.

On the recent spike in Covid-19 cases in the country, he said it is not due to the government’s shortcomings in curbing the spread of the pandemic.

“It involves cooperation from all parties and everyone’s full compliance with the SOPs. The government should stay focused in order to overcome this issue and stop talking about changing the government now. Instead, all parties need to work together to break the chain of infection,” he said. – Bernama, January 12, 2021

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