Malaysia Needs Strong Economic Remedy

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MALAYSIA's economy grew 0.7 per cent in the initial quarter of 2020, well off the 4.5 per cent pace recorded a year earlier, as the impact of the Covid-19 pandemic begins to show up in the numbers.
The result announced today did beat the median forecast of a 1.5 per cent contraction in a Reuters poll of 12 economists. After a steady expansion in the first two months of the quarter, economic activity came to a sharp downshift with the implementation of the nationwide movement control order (MCO) in mid-March.
Bank Negara in its report said the growth of services and manufacturing sectors moderated, while other sectors contracted and external demand and investments declined. On a quarter-on-quarter, seasonally adjusted basis, the economy shrank by 2 per cent.
The pandemic is not only affecting Malaysia but most countries in the world. Some countries are posting negative growth while some had to revise their rates.
Prime Minister Muhyiddin Yassin needs a strong remedy for this. Not blaming him for the pandemic and the stimulus package recently announced to assist the citizens affected by the MCO, the government should look immediately at critical sectors that could keep the economy at bay.
With estimated 2 million people will lose their jobs in the next two or three months, thus shooting up the unemployment rate to more than 4 per cent (some said it could be worse ranging to 13 per cent), re-deployment of business is what vital.
Since the numbers only partially reflect the harsh restrictions imposed to control the spread of COVID-19, BNM added that it expects the economy to contract in the second quarter.
As ASEAN third-largest economy, Malaysia can't just sit tight on its fundamentals. The government must embark on massive plan to stop the economy from sliding further and at the same time avoid more new cases of the pandemic.
It sounds heavy but as what other governments did, a gradual and well-planned 'back to business' is what they must do or see the economy reaches its slump.
Malaysians too must work closely with the government in enduring all this by adhering to advises given by the Health Ministry. They have no option but to keep their fingers crossed for a total control of the pandemic.
Muhyiddin once said Malaysia was losing around RM2.4 billion per day during the full lockdown, and it is estimated the total loss up to May 1 at around RM63 billion. More will be lost should the restrictions are not eased for another month.
Yes, economic re-engineering. Don't we have enough experts?

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