KUALA LUMPUR, June 8 — Tomorrow marks Tan Sri Muhyiddin Yassin’s first 100 days in office as prime minister after taking the reins of the nation’s administration on March 1 and shouldering the heavy responsibility of leading the country through the Covid-19 pandemic and economic crisis.
However, Universiti Kebangsaan Malaysia’s Faculty of Economics and Management lecturer Hazrul Shahiri said Muhyiddin has turned the coronavirus threat into an opportunity to prove his capability in restoring the nation’s economy and restructuring the economic cycle.
“His first action to address this challenge was to appoint economic experts to lead the Economic Action Council (EAC) that was tasked with formulating short and long-term fiscal policies to deal with the economic crisis,” he told Bernama when asked to comment on Muhyiddin’s first 100 days helming the government, particularly on the aspect of economic recovery and development.
The Parti Pribumi Bersatu Malaysia (Bersatu) president was sworn in as the eighth prime minister on March 1, taking his oath of office before the Yang di-Pertuan Agong, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah.
The EAC held its inaugural meeting on March 16, where it decided to take additional measures to reinforce the previously-announced Economic Stimulus Package 2020.
Hazrul said the implementation of the movement control order (MCO) effective March 18 to contain the pandemic led to economic disruptions following the suspension of manufacturing and trading activities as well as jobs.
The MCO not only affected demand in the market but also had a negative impact on the country’s revenue, business performance and people’s income, he noted.
“No other prime minister had faced such a daunting economic challenge before. The economic crisis due to Covid-19 is far bigger than the 1997/1998 financial crisis and the recession in the 1980s,” he said.
However, the academician said, the launch of the RM250 billion Prihatin Rakyat Economic Stimulus Package on the 10th day of the MCO period showed the commitment and concern of the Muhyiddin administration to revive the country’s economy.
“This is regarded as a swift and timely action to balance the efforts to contain the Covid-19 spread with the economic recovery process, with a larger allocation compared to the economic stimulus packages worth RM67 billion in 2009,” Hazrul said.
According to him, the Muhyiddin-led government has endeavoured not to depend on the International Monetary Fund (IMF) during a period when many other countries have sought help from the fund to nurse their economies back to health. It was reported that more than 100 countries had turned to IMF for financial support.
Hazrul said the prime minister had focused on domestic economic development to slow down the rapid decline in private sector spending and investment, as it was difficult to improve international trade amid Covid-19’s crippling effects on the global economy.
Ten days after announcing the RM250 billion Prihatin package, Muhyiddin unveiled the RM10 billion Additional Prihatin SME Economic Stimulus Package to ensure the small and medium enterprises (SMEs) could continue their operations in a challenging environment and reduce the risk of mass layoffs.
“Relief measures such as wage subsidy, cash assistance to SMEs and micro credit scheme have helped companies to sustain despite sustain themselves despite not being fully operational.
“So it’s not just about assisting the people by easing their burden and protecting jobs but also about helping companies in terms of cash flow,” Hazrul said.
He commended the Muhyiddin-led government’s prompt action in helping to cushion Covid-19’s impact on the country’s economy amid the havoc wrought on economies globally.
Hazrul said the easing of the MCO with the introduction of the conditional MCO and the opening of economic activities in stages had given room and opportunity for economic activities to resume and adapt for the post-Covid-19 era.
“The rise in the FBM Bursa Malaysia KLCI to-date signals investors’ confidence to contribute again to the economy and hence accelerate the recovery process,” he said.
Yesterday, Muhyiddin announced the further easing of restrictions under the recovery MCO (RMCO), which starts on Wednesday and is part of the “exit strategy” phase.
Among others, the government is allowing more businesses to operate and inter-state travel to resume (except to areas under Enhanced MCO), which will spur domestic tourism, one of the country’s hardest-hit economic sectors. — Bernama
