Friday 29 Mar 2024
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The sharp rise in Covid-19 vaccinations in Malaysia represents a breath of fresh air for the people, in hope of a successful “exit strategy” from the pandemic by achieving herd immunity. Thanks to consistent supplies of the vaccine now, the National COVID-19 Immunisation Plan (PICK) has picked up pace, recently reaching 300,000 vaccinations per day. 

With nearly 50% of Malaysians registered for vaccination, 13% of the population vaccinated and more than 400,000 daily doses to be administered from August onwards, all eyes are fixed on the year end, when the National Covid-19 Immunisation Programme is expected to successfully vaccinate 80% of Malaysians.

But until then, the environment is truly harsh, especially for vulnerable segments of the community. Indeed, the coronavirus does not discriminate. To date, Covid-19 has infected more than 800,000 individuals in the country. Since March 2020, Malaysia has identified over 2,000 Covid-19 clusters. The government had enforced the Targeted Enhanced Movement Control Order (TEMCO) on thousands of people as well — impacting not only the social but also the economic aspect of all those involved.

This means the total number of infections loosely translates to an estimated three million people (family members, households and communities) who are directly impacted by Covid-19 due close contact, self-quarantine and lockdowns. That means no income for some people during this difficult and uncertain time; disruption in our children’s education; pushing our public healthcare and security forces to the limit, and more. Is enough being done to address these shocks?

The National Recovery Plan (NRP) phased approach is a clear blueprint for all, particularly businesses, in crafting their forward strategy

Protecting lives and livelihoods

Much has been done by the government to support lives and livelihoods, not just by providing direct aid, but also by mobilising the government-related machinery to alleviate cashflow issues. Thanks to the government’s support measures, including a higher winding-up threshold and longer statutory demand period, Malaysia only saw about 78,000 companies being wound up in 2020, as opposed to the nearly 440,000 new companies that registered during this period. To be sure, the national unemployment rate had reduced to 4.6% in April, and the continuation of the wage subsidy scheme will lend further support. In total, around RM25 billion has been earmarked to support over 2.7 million employees — representing an average of more than RM9,000 per person receiving salary support directly from the government since the outbreak of the pandemic. The Safe@Work initiative under the Ministry of International Trade and Industry introduced in March allows employees to work under stringent standard operating procedures (SOPs), ensuring sustainability of income for employees and businesses. The government also shares the load by supporting employers’ costs to, among others, conduct Covid-19 screening tests for eligible employees.

In the bigger picture, this support for businesses ensures that the nation continues to reap the benefits from the recent boom in key industries, including healthcare equipment, semiconductors and commodities — the proceeds of which are channelled back to the public in the form of direct and indirect assistance.

National Recovery Plan as our Exit Strategy

Recently, the Government launched the National Recovery Plan (NRP) as the nation’s exit strategy based on a phased approach. Premised upon 3 threshold values translated into individual state level targets – cases per 100,000 population, ICU capacity and vaccination rates – the plan is a clear blueprint for all, particularly businesses, in crafting their forward strategy.

Meanwhile, it is noted that Phases 1 and 2 of the NRP allow micro businesses that sell food and other essential items are allowed to open during the lockdown — a crucial lifeline for millions who survive on daily cash flow. It is indeed critical for Malaysia to develop a healthy economic environment that ultimately results in job opportunities.

Until May this year, Putrajaya had introduced three aid packages (Permai, Pemerkasa and Pemerkasa+), with a collective RM75 billion in value, inclusive of a fiscal injection of RM16.8 billion. The government recently announced the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) aid package, worth RM150 billion, on June 28. This included a fiscal injection of another RM10 billion (see table).

This brings the amount of stimulus in the country to RM225 billion this year, and RM530 billion since the start of the pandemic, which includes a total fiscal injection of RM81.8 billion. 

More importantly, the return of the six-month bank loan moratorium and repayment assistance under Pemulih, with automatic approval for individuals and micro businesses, serves as a lifeline as certain economic sectors remain shut in the effort to bring down the number of new daily Covid-19 cases.

An array of initiatives has been extended, and with expanded scope, including subsidies for wages, utilities, fuel and consumer products, free internet for mobile users and other forms of repayment relief, as well as multiple tax initiatives. All these efforts are meant to provide the necessary breathing room – whether in the form of direct aid, or in alleviating cashflow issue – before the country achieves its 80% immunised population target and things gradually go back to normal.

Playing our part

In the meantime, everyone in the country — from individuals to small and big businesses as well as the authorities and even the government — must play their part to ensure the nation is able to move on from Phase One of the National Recovery Plan and reopen all social and economic activities as quickly and safely as possible.

That means encouraging vaccination among friends, family, colleagues and employees through facts and other forms of encouragement, and to remain vigilant in observing the SOPs. We look at examples in the UK, where more than half the population had received the first dose of the vaccine, yet new cases rebounded in June and are still climbing to nearly 30,000 cases daily.

Individuals can play their part by supporting local businesses, especially the mom-and-pop stores that are still getting used to the e-commerce ecosystem, to help them survive and weather this challenging period.

The government, too, needs the help of Malaysians. The Ministry of Health is seeking to hire volunteers to help with the vaccination programme through www.myvac.com.my, thus providing an opportunity for those whose income has been impacted during the pandemic.

Ultimately, those who require assistance are encouraged to access the one-stop platform, belanjawan2021.treasury.gov.my/manfaat, to be informed about the eligible initiatives available. Government-related agencies are also here to assist to provide more clarity to individuals and businesses, and to help them rebound. 

As of 10 July, 7 states - Perlis, Perak, Pahang, Kelantan, Terengganu, Penang and Sabah have successfully moved to Phase 2 of the NRP,  providing clear proof that there is light at the end of the COVID-19 tunnel.

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