Many countries have started to state their intention to launch stimulus packages to support businesses and industries affected by the covid-19 (coronavirus). This is because if these industries are in trouble, businesses will be affected and retrenchments may happen. When people lose their jobs, then they will have problems in paying for their loans and the issues will become worse and will start to affect other industries too. This is why an economic stimulus package is necessary. Malaysia has also planned for one.
Article in nst.com.my Finance Minister Lim Guan Eng said that Prime Minister Tun Dr Mahathir Mohamad will announce an economic stimulus package on Feb 27 to mitigate the adverse external economic impacts brought about by the Covid-19 outbreak. He said, “While the market is facing serious challenges, we should not despair but instead persevere to allow our industry to survive so that the country is ready to benefit from the economic rebound once the Covid-19 threat is over.”
He added in a statement, “The government will adopt measures to assist these companies, but emphasis should also be placed on exploring alternative revenues such as shifting towards encouraging domestic tourism, and sourcing from other markets.” Lim also said that the stimulus package was formulated with cooperation between his ministry and other ministries including Economic Affairs, Transport, Tourism, Arts and Culture as well as various government agencies. Please read the Article in nst.com.my
Remember yeah, the stimulus package is likely to be short-term in nature. On a longer term, we need to quickly adapt what we intended to achieve in Q1 so that it could still be achieved within the remaining months in 2020. A very good example would be the 2020 Visit Malaysia Year. If the Chinese tourists are going to be fewer this year, then we have to already have a plan ready to roll out as soon as the situation gets better.
Alternatively, it’s time to really diversify too and not rely on a few major markets for example. These new strategies must be decided now and rolled out. There is no time to wait because any new policy will need time to implement. Happy understanding.
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