Are you still at home? Working from home or still nothing to do? Hopefully it’s the former. COVID-19 has wrecked havoc our plans for 2020. Many things I wish to do is now pushed back as well. However, I feel blessed that all may loved ones are safe and we could continue to keep everyone in touch via zoom. So, what’s happening to the economy? How do we balance between COVID-19 and the economy?
The balance we are trying to achieve today is HOW to continue moving all businesses back to normal while at the same time trying to keep the COVID-19 infections under control. From my writings, there is no doubt that I favour a continuous move towards normalisation. Truth is, without the economy moving again, soon we will have another crisis which is as hard to solve; economic crisis. So, what should happen in 2021 once all employees could get back to work? Even as organisations continue to race towards finding that COVID-19 vaccine?
Article in theedgemarkets.com Finance Minister Tengku Zafrul said that the strategy which the government is using for the economic recovery is the 6R approach – Resolve, Resilience, Restart, Recovery, Revitalise and Reform. Resolve is where the government’s resolve to curb the deadly virus by imposing the Movement Control Order (MCO) effective March 18.
Resilience is the RM250 billion Prihatin Rakyat Economic Stimulus Package unveiled on March 27 as well as the additional RM10 billion announced on April 6. Restart is the move to reopen and recharge the economy in stages.
Recovery is the current stage we are in. He said, “We are currently formulating a short-term economic recovery plan, to be announced in early June.” Fifth phase would be announced in October or November 2020. Last would be REFORM which will be the focus on the 12th Malaysia Plan in January 2021. Please read the full article with more details here:Article in theedgemarkets.com
If we look at the world currently, we are affected badly by COVID-19. Fortunately we could see more normalisation happening. Article on countries’ reopening here Even football leagues have started to move towards it too. A recent article here: Football is big and money = economy It’s really not about when to reopen. It is now. It’s just a question of HOW do we do it. How badly affected is the world then? Is the Malaysian economy still doing good?
Malaysia is not spared. Recently, IMF managing director Kristalina Georgieva said that the prediction of negative 3 percent a month ago may have to be revised. It is likely to get worse. This is why now it’s very important for all countries to also start taking pro-active steps towards economic recovery. It’s really not possible to wait for full reopening only after COVID-19 vaccine has been found and approved, manufactured and even delivered… That is likely to be very long time more to come.