The Economic Vs Social Cost Of Mco


Today, we face a dilemma because of the movement control order (MCO). Should we prioritise social or economic matters? It is the poor, the self-employed and the daily earners who are paying the biggest price
Many may be in desperate need of financial aid but may never register for Cost of Living Aid (BSH) or assistance under the Prihatin package (BPN). Don’t forget about migrant workers, legal or illegal. They are receiving no financial support and are unable to perform jobs or activities to earn an income. We cannot deny that migrant workers also contribute to the economy
A prolonged MCO could have a bigger toll on economic issues. Here are some suggestions/recommendations for our leaders and policymakers:Broaden the BSH/BPN schemes to include more needy Malaysians.Increase the amounts and period from six months to nine, like Singapore has.Temporary registration card for BSH/BPN schemesThe poor, especially the urban poor and unemployed migrants, need to make a living. The government should set up a system allowing them to register for temporary aid under BSH/BPN. This does not need to be in the form of money. It could also be food or rations for their families
SMEsThe supply and demand chain has collapsed. The six-month moratorium on loan repayments and subsidies for workers’ salaries is welcome – for sure, this will reduce their financial burdens
But what about SMEs which main employ foreign workers who are not under Socso? They are not entitled to salary subsidies. Besides, the impact of the MCO may last a long time, and SMEs need to pay overhead expenses like rental, electricity and water bills, etc
SMEs play an important role in our economy. I hope the prime minister will announce additional stimulus packages for them
Progressively lift the MCOIf we wait until April 28 or prolong the order, the economic toll will be higher than the social cost. Don’t get me wrong; I fully support the MCO and social distancing as these look like our best bet at the moment. But I am worried that a prolonged MCO might result in more economic than social pain
I hope our leaders from the Perikatan Nasional government understand the reality on the ground and implement more viable strategies as quickly as possible
Lift the MCO in stages and allow certain sectors to resume operations, of course with restrictions in place. This will help kick-start the economy
P Raju is an FMT reader.

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