Researchers propose plan to target spread of virus, get economy going

 

Malaysia’s movement restrictions have not worked to contain the spread of Covid-19, says the Center for Market Education.

PETALING JAYA: An economic policy think tank has presented a plan to ditch lockdowns entirely and allow the targeted spread of the virus to enable the economy to function while limiting the infection of the community’s most vulnerable.

Published by the Center for Market Education (CME) and titled “Fighting Covid-19 in Malaysia: Mass Testing and Other Reasonable Proposals”, the authors argue that such a solution would combat the pandemic without sacrificing the social and economic structure of the country.

“We believe that we have offered a fresh analysis grounded in a sounder trade-off analysis and on the principle of individual responsibility. Contrary to what we have seen so far, this is indeed a plan,” said CME chief Carmelo Ferlito, noting that the government’s current reliance on lockdowns is ineffective and untenable.

Ferlito said the “blind faith” in movement restrictions and the focus on reducing infections should instead be replaced by allowing transmission to increase among those healthy enough to stave off the virus’ worst effects so immunity can be built through exposure, while only those with comorbidities or other vulnerabilities are protected from it.

Carmelo Ferlito.

This must be met with a commitment to frequent and affordable mass testing, so that cases can be isolated and traced and the economy can continue to function as normal.

Broad restrictions have had a disproportionate economic impact, the authors said.

“Affecting mostly the poor, generalised movement restrictions have considerably increased unemployment, underemployment and poverty: currently the number of those struggling to make ends meet is more than 700 times higher than the number of people who succumbed to Covid-19.”

Their research estimates that treating the virus itself would cost around RM8 billion a year, as opposed to the roughly RM170 billion a 12-month lockdown would cost, which suggests money would be better channelled to investing in the medical field, such as procuring more equipment, building hospitals and encouraging private sector collaboration.

Funding for these measures would come from additional taxes, such as a special 5% corporate tax on profits above a certain threshold, a targeted and multi-layer reintroduction of GST and the option for individuals and businesses to allocate a portion of their taxes to Covid-19 response.

“We hope to find ears ready to listen, as the country is close to collapsing. We are here with our little contribution in the fight for the common good. We hope that a new leadership may emerge in the country to propose a fresh approach against the current emergency,” Ferlito said. - FMT