KUALA LUMPUR – Essential sectors are still contributing significantly to the national gross domestic product (GDP) even during the current movement control order (MCO 2.0) period, according to Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
He said key sectors such as commodities, mining and agriculture are allowed to operate at nearly full capacity, as they are capital intensive.
“MCO 2.0 is a dynamic plan. We have considered each sector based on its contribution to the economy,” he told the Bursa Malaysia Forum on Bernama TV today.
He was speaking during the question-and-answer session moderated by Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar at the forum themed “Menang Bersama: Rebuilding Malaysia’s Economy Together”.
“So, I think at the end of the day, if you look at the differences between MCO 1.0 and MCO 2.0, the key point here is learning (from) MCO 1.0.
“But we need to make sure that we have a consistent policy going forward, and with these new guidelines – I think I mentioned it before – the impact to Malaysia’s GDP on a daily basis is around RM700 million compared to about RM2.4 billion per day previously (during MCO 1.0),” he noted.
Earlier in his speech, Tengku Zafrul said there has been plenty of debate on whether the country should go into a full lockdown.
“It has been highly challenging to balance the safety of people’s lives, and the security of their livelihoods. It involves many factors, requiring careful deliberation and thought, and constant review as the situation evolves.
“We must also realise that there are harms that may be difficult to predict. The economy does not operate at the flick of a switch. There is no ‘turning it off’, and then ‘turning it back on’ as we see fit. Livelihoods depend on it,” he added.
The finance minister said, Malaysians must look at this issue squarely in the face and ask themselves what would be the real impact of a stricter lockdown.
Tengku Zafrul said it is inevitable that policymakers and market regulators talk about the economic effect of the lockdown from a macro perspective, but behind the numbers are real lives.
He pointed out that over 70% of the small and medium enterprises (SMEs) in Malaysia posted a loss in 2020.
“It goes without saying that a strict lockdown will hit our SMEs, or over 900,000 businesses nationwide.
“Within this are small and micro-business owners whose livelihoods are immediately affected by even a day of lockdown, what more a 14-day shutdown?” he noted. – Bernama, February 2, 2021
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