Don't kill the already limping economy with a full lockdown, businesses urge govt

PETALING JAYA: A full Covid-19 lockdown would devastate and stifle the recovery of the already badly affected economy, say two major business associations.

Malaysia Retailers Association (MRA) president Tan Sri William Cheng and Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai urged the government not to implement a full lockdown as it would cause irreparable damage to the economy.

"The association is strongly and firmly against such a move as it would destroy the nation’s already fragile economy yet ineffective in curbing the spread of the virus," said Cheng in a statement on Thursday (May 20).

Soh said the impact of the first movement control order in March last year, where only essential services were allowed to operate at 50% capacity, was very severe on the economy, resulting in a 17.1% drop in GDP in the second quarter and loss of jobs hitting 826,100 in May 2020.

“The government had to pump in various financial aids to help industries as well as individuals wade through the unprecedented pandemic situation, without which many businesses would have had to fold their operations, ” he said in a separate statement on Thursday.

They were commenting on Health Minister Datuk Seri Dr Adham Baba's statement on Monday (May 17) that Selangor may return to a full movement control order as it did in March last year if Covid-19 cases in the state continue to surge.

Though opposing a full MCO, Cheng and Soh said they agreed with the government that stricter MCO should be implemented in districts and states that have a high number of Covid-19 cases.

However, they said the government must take into consideration the interest of businesses and preservation of livelihoods before making any decision on the matter.

Cheng and Soh proposed that the government use the MCO 2.0 model that was enforced for two weeks in six states from Jan 13 this year.

They said this model allowed the economic sectors to operate but with stricter compliance to existing standard operating procedures (SOP).

They added that there should also be stricter restrictions on people's movements while encouraging the public to stay home.

The work from home (WFH) practice should also be adopted by businesses that are able to do so, they added.

Cheng and Soh also said the National Covid-19 Immunisation Programme should be accelerated, with priority given to the economic sector.