Image credit: The Star
JOHOR BARU: The second wave of Covid-19 could have a greater impact on the nation’s economy than the first wave.
Universiti Teknologi Malaysia (UTM) Azman Hashim International Business School Associate Professor Dr L. Nanthakumar said given this likely scenario, the government must tackle the problem by being balanced and fair not only to the people but also to the various sectors that contributed to the nation’s growth.
“The government has just reopened various economic sectors to revitalise it after months of inactivity due to the movement control order (MCO) being imposed.
“However, if the second wave of Covid-19 does happen and the government orders another round of more stringent MCO, besides giving handouts to the B40 group, it will not help the situation but may end up making it worse,” he told StarMetro.
He added that the government must ensure that the supply and demand chain was protected, as it would help encourage domestic growth during such difficult periods.
Nanthakumar said that the country’s financial institutions would be the most badly affected as banks would be unable to give out new loans to those wanting to buy a house or expand their businesses.
“During the first few months of MCO, we saw small businesses and major sectors such as the tourism industry badly hit as many states, especially in the southern region, depended on Singapore tourists.
“The government did the right thing by encouraging domestic tourism and the sector is slowly picking up but the perception of Covid-19 will always be in the people’s mind,” he added.
Nanthakumar said people should not depend on the government alone to protect the country’s economy.
He pointed out that the Covid-19 pandemic had a greater impact than the 1997 Asian financial crisis as no country in the world was able to protect its economy from the virus.
“The road to economic recovery will be long but all of us have a role to play by listening to the authorities and staying vigilant to protect us from Covid-19,” he said.
Source: https://www.thestar.com.my/metro/metro-news/2020/07/28/don-another-wave-of-covid-19-will-have-bigger-impact