KOTA KINABALU – The RM50 million aid announced by the new Sabah government is not enough to spur the coronavirus-hit economy, said an analyst, calling for more cash assistance to be given.
Sabah UiTM’s Firdausi Suffian told The Vibes that even the previous administration’s much larger stimulus package has done little to cushion the pandemic’s impact.
“Our economy has yet to recover from the movement control order (MCO).
“The RM240 million recovery package announced by the Warisan government could do little.”
He said Putrajaya’s massive Prihatin stimulus package to help small and medium enterprises, too, has been unable to prevent many companies from closing down.
Predicting that Sabah will register a negative gross domestic product growth, he stressed the importance of containing Covid-19.
“The damage brought about by the pandemic will take some time to recover from.
“Then, there is also the issue of unemployment and those being instructed to take unpaid leave throughout the conditional MCO (CMCO).”
The CMCO has been imposed in the west coast districts of Penampang, Putatan and here, and will be in force starting today in Sandakan, Papar and Tuaran for a period of two weeks.
Chief Minister Datuk Seri Hajiji Mohd Noor recently announced the RM50 million allocation, of which RM10 million will go towards food hampers for residents of Kunak, Tawau, Semporna and Lahad Datu, which are under the targeted enhanced MCO.
There are concerns that small and medium enterprises will find it tough to stay afloat if the partial lockdown exceeds two weeks.
“No business for them would mean no income,” said a businessman.
“However, I believe that the situation is only for the short term... and won’t be extended once health authorities bring Covid-19 cases under control.”
Sabah Employers’ Association leader Yap Cheen Boon said movement curbs are necessary following the state election, but they will, unfortunately, deal a blow to an already fragile economy.
“In 2019, the economy was almost stagnant, with up to 10% of businesses closing down and unemployment at a level unseen since 2005.
“This year, we have seen many months of stress, and just when things are slowly picking up, the CMCO could be the final nail.
“It is our hope that state leaders improve intra-agency communication and reduce confusion arising from indecision when it comes to implementing SOPs.
“The state government must also work to bridge communication with the federal government, and designate measures that serve as an immediate lifeline for the Sabah economy.”
He said development plans will materialise only if industries survive the virus onslaught, and that the state government should get banks to extend the loan moratorium to lighten the burden on both business and individual borrowers.
Assistance in the form of an automatic wage subsidy or cash aid for the B40 group will also be of great help, he added. – The Vibes, October 9, 2020
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