Economists back call for all-of-govt battle plan against pandemic

 

Sunway University’s Yeah Kim Leng says a combined all-of-government and all-of-nation approach will be ideal to allay the concerns of investors.

PETALING JAYA: Two economists have lent their support to a call for a coordinated fight against Covid-19 involving the myriad agencies of the government.

Commenting on DAP strongman Lim Kit Siang’s recent complaint that Putrajaya had been ignoring suggestions for an all-of-government approach in fighting the pandemic, Yeah Kim Leng of Sunway University and Shankaran Nambiar of the Malaysian Institute of Economic Research said investors might see such coordination as a reflection of government stability.

Yeah said investors would feel reassured if the government had a clear and well considered strategy and could show good coordination across agencies in carrying out policies to mitigate the health and economic crises.

Yeah Kim Leng.

He said the recent flip-flopping over the types of businesses allowed to operate under the movement control order (MCO) would not have occurred under a good all-of-government approach since key decisions would have been agreed upon by all the relevant ministries.

But he told FMT a combined all-of-government and all-of-nation approach would be even more attractive to investors.

He described his idea of an all-of-nation approach as one that would include the gathering of input from key private sector stakeholders, industry associations and expert groups to ensure policies and action taken are not only inclusive but backed by facts and evidence.

Shankaran Nambiar.

“An all-of-government approach combined with an all-of-nation approach will contribute to a positive image of a competent and responsive government,” he said.

“It will create the perception that the government listens and acts responsibly and prudently, deploying the full resources of ministries and wisdom of government heads to resolve the crises at hand.”

Nambiar called for a bipartisan approach and the involvement of all segments of society in the search for ways to cut the spread of the pandemic.

He said this was the “call of the hour” and heeding it would present an image of Malaysia as a nation in which differences could be put aside in the face of a common enemy.

“This will indicate a measure of maturity that may be inspiring to investors,” he said. “It will show that the government is mature enough to be able to sit at the same table with lawmakers of different views.”

Rajah Rasiah.

Rajah Rasiah, a professor of economics at Universiti Malaya, said the closure of important firms under the strict application of the MCO on certain sectors was one of the reasons Malaysia was falling behind Indonesia and other neighbouring countries in foreign direct investment inflows.

“It shows a decline in coordination between multinational companies and the international trade and industry ministry,” he said.

“For example, Toyota and Honda are large multinational corporations that need special attention. Requiring them to close down in the MCO states does not show an understanding of how firms operate.”

He warned that this would affect output, employment and exports and disrupt supply chains. - FMT