KUALA LUMPUR (July 20): Malaysia’s economy may be severely impacted if the movement control order (MCO) is re-imposed, says Prime Minister Tan Sri Muhyiddin Yassin.

The premier noted that the country’s daily Covid-19 infections have risen to double-digit levels over the last few days, with 13 new clusters discovered throughout the current recovery MCO (RMCO) period, which began on June 10.

“If there is a spike in new Covid-19 cases, this will prompt the government to reimplement the MCO, (which in turn will have a) massive impact on our economy. The closing of economic sectors can cause the country to lose at least RM2 billion per day and millions of workers to lose their income sources,” he said in a live televised speech today.

“All the government and non-governmental organisations’ efforts under the Penjana and Prihatin [stimulus] packages to revive the economy will go to waste. The Prihatin package is expected to contribute over 3% to the country’s GDP (gross domestic product) this year,” he added.

According to Muhyiddin, Malaysia’s unemployment rate of 5.3% recorded in May could rise steeply if the MCO is re-imposed and subsequently cause the country to miss its GDP growth target for next year.

“This is something that needs to be prevented,” he said, adding that the public must continue to practise the new normal such as wearing face masks in public places, observing physical distancing and avoiding crowded places.  

In light of this, Muhyiddin said the government is considering making wearing of face masks compulsory in public places. The details, he said, will be announced soon after the government finalises the new ruling.

The prime minister also urged the public, particularly heads of families and communities, to assert their authority in making sure that those under their care wear face masks and practise all preventive measures when they are outside.