Gov’t should leave enough fiscal room to manoeuvre – Khairy

CORONAVIRUS | Every government fighting the Covid-19 pandemic needs to leave enough fiscal room to manoeuvre and not entirely use up the bullet in the first two or three months, Science, Technology and Innovation Minister Khairy Jamaluddin said.

“Every single country is facing challenges with a fiscal space that they have, (thus,) we should not say that we don’t have any more fiscal room to manoeuvre but we recognise that Covid-19 is not a one-month crisis, it is going to be here at least for the next 12-18 months before a vaccine comes in.

“Hence, governments shouldn’t exhaust entirely their fiscal bullets within the first two or three months,” he said during a discussion with the EU-Malaysia Chamber of Commerce and Industry today.

“We need to leave that option for us on the table for the next six months and budget for next year, so that we can continue to assist Malaysians to recover,” he said when asked if there will be additional assistance besides what has already been announced, specifically for the science and technology sector.

Malaysia has announced an RM260 billion stimulus package, which widens the country’s fiscal deficit from 3.2 percent projected earlier to 4.7 percent.

In the 90-minute discussion, Khairy said while the discussion to a wider spectrum of the industry was still being considered, some concerns were already covered under the stimulus packages that have been announced.

“We are also in discussion with the Finance Ministry and I will be announcing something next week or so,” he said, adding that the government has been engaging and will continue to do so with various stakeholders, industries, business chambers, as well as institutions, especially in the technology sector.

He said the International Trade and Industry Ministry (Miti) is considering the industries that can be allowed to operate, provided they follow the strict requirements set by the Health Ministry (MOH).

“We are looking at which one can be lifted first, and which one can come later.

“There are sectors that will be last (allowed to operate) which are tourism, retail, food and beverages, entertainment, as well as sports. These are things which require close physical contact than others,” he said.

On the movement control order (MCO), he said: “There are certain scientific indicators that determine that obviously.

“We have to be innovative, nimble and flexible. At the same time, we must be prudent because at the end of the day, no government wants to make the trade-off between life and livelihoods.”

- Bernama