Economics Local

MCO a necessary evil that costs the economy RM2.4 billion daily

The Muhyiddin interview

TheMole
Written by TheMole

PUTRAJAYA — April 25, 2020: While it is a decision absolutely necessary to check the spread of Covid-19, the movement control order means a loss of RM2.4 billion to the country daily.

To counter the adverse impact of the MCO, the government announced an economic stimulus package last month amounting to RM260 billion.

In an interview that was aired on television last night, Prime Minister Tan Sri Muhyiddin Yassin said his priority is to ensure there would be minimal job losses.

The Finance Ministry was given two weeks to formulate the economic stimulus package. The government had small- and-medium enterprises especially in mind when formulating the stimulus packages as they are an important pillar of the economy.

“SMEs contribute about 35% to Malaysia’s GDP (gross domestic product) and generate about 70% of jobs so they are important.

“Which is why about RM100 billion is dedicated to sustaining SME businesses.”

On the MCO, Muhyiddin elaborated further thus: “But we had no choice. We had to take that step and deal with the impact it brought.

“Everyone would be affected because businesses couldn’t run and exports were stopped. We needed a plan. If the MCO continued without proper planning, the economy Malaysia built over six decades would have collapsed.”

e said the government was keeping small-and-medium enterprises (SMEs) in mind when formulating the stimulus packages as they were an important pillar of the economy.

“SMEs contributed about 35% to Malaysia’s GDP (gross domestic product) and generated about 70% of the jobs in the market so they are important.

“Which is why about RM100bil is dedicated to sustaining SME businesses,” he said.

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