Azmin: Decision based on studies

PETALING JAYA: The government’s decision to restart the economy is based on detailed studies on businesses allowed to operate under standard operating procedure (SOP) set for their respective industries, says Datuk Seri Azmin Ali (pic).The Senior Minister said the reopening of the economic sectors would contribute to the growth of the country’s gross domestic product (GDP), domestic and foreign direct investments, exports and the sustainability of small and medium enterprises (SMEs), including job security.“The government made this decision thoroughly, cautiously and with responsibility. It has given detailed consideration based on the data and studies presented on the health, economic as well as financial status of the country, ” he said in a statement yesterday.

Azmin, who is also International Trade and Industry Minister, said the government decided to reopen the economy in stages from March 18 to April 28 during the first three phases of the movement control order (MCO) in compliance with the health requirements’ SOP.

The careful and cautious actions had shown good results, especially when the reopening of the economic sector did not affect the government’s efforts in curbing the spread of Covid-19, Azmin said.

The government, he said, also made its decision based on the World Health Organisation’s (WHO) guidelines on six main criteria.

He added that medical experts from China, who were in Malaysia to share their experiences in tackling Covid-19, gave their expert opinion and felt that the country was ready to restart its economic activity.Azmin said if the government did not take the step to restart the economy, the country’s source of income would decline, its economic growth would be stagnant and the incomes of businesses and individuals would also be affected.

“Many businesses will also close, ” he said.

He said the drop in the value of exports for the manufacturing sector alone was estimated at RM32bil for every two weeks of each MCO phase.

He hoped that the business community, especially the SMEs, would be able to revive their business operations, strengthen their cash flow, rebuild their supply chains and manage the risk of reshoring in light of the reopening of the economy.“Currently, SMEs contribute 66% of the workforce in Malaysia. The government’s actions will certainly be able to guarantee employment and employee incomes, ” he added.

Azmin said the effectiveness of this move would require support from various groups, including the private sector, industry associations and business entities.

“In implementing the economic recovery strategy, the business community must adapt to the new normal.

“Businesses that were previously heavily dependent on labour must now focus more on automation as well technology, ” he said, adding that the digitisation process needed to be accelerated to reduce human contact.

“Businesses reliant on intensive labour force cannot be negligent when it comes to worker’s protection, including issues on health, hygiene and safety, ” he said.

Azmin said economic sectors allowed to resume operations were required to follow the SOP set for their respective industries.

“Failure to comply with the SOP is an offence and legal action can be taken against the company or the firm involved, ” he said. - Star