KUALA LUMPUR – The impact of the current movement control order (MCO) is not expected to be as severe as that felt when the lockdown was imposed in March and April last year, said Tan Sri Muhyiddin Yassin.
The prime minister, in a televised address this evening, said this is due to several factors, including the fact that more economic activities are allowed during the MCO this time around, various types of aid are being rolled out, and global trade and Malaysian exports have improved.
“As such, the impact of the current MCO on the economy is expected to be manageable. Growth will continue to be supported by a strong exports sector and the recovery in global trade.
“The economic stimulus packages, Budget 2021 and Perlindungan Ekonomi dan Rakyat Malaysia (Permai) relief package will continue to boost consumption.”
He said high-impact projects and initiatives with significant economic multipliers will sustain the recovery momentum.
The MCO is in force in the Federal Territories (Kuala Lumpur, Putrajaya and Labuan), Penang, Selangor, Melaka, Johor, Sabah and Kelantan, as well as three Sarawak districts, namely Kuching, Miri and Sibu, and Negri Sembilan’s Port Dickson and Seremban.
Last April, Muhyiddin said the country would lose RM2.4 billion each day of the lockdown.
However, this second MCO is not as strict.
To finance the RM15 billion Permai, the government will reallocate existing funds based on current priorities and through more prudent spending, said Muhyiddin.
“The government will also ensure that all initiatives announced are implemented expediently and effectively.”
On concerns among certain quarters regarding the implementation of the MCO and proclamation of emergency, he stressed that the emergency was declared with the sole intention of curbing Covid-19.
“The government will endeavour to do everything possible to ensure that the impact of these measures on the country’s economy is contained.
“Since January 11, 2021, it is clear that our capital markets, such as Bursa Malaysia and the bond market, have remained stable and orderly.” – The Vibes, January 18, 2021
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