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Friday, April 10, 2020

PREMATURE OR NOT, MALAYSIA DECLARES VICTORY OVER COVID-19 – EVEN AS WORLD BANK WARNS OF ‘LARGE IMPACT’ ON COUNTRY’S ALREADY KLEPTOCRACY-HIT ECONOMY: ‘LAST WEEK WAS PERHAPS OUR PEAK’ – HEALTH DIRECTOR

MALAYSIA has likely seen the peak of Covid-19 infections last week, with the daily number of recoveries now exceeding new cases, said Director-General of Health, Dr Noor Hisham Abdullah.
“Data has shown that last week was perhaps our peak. We are seeing less and less new cases,” Dr Noor Hisham said in Putrajaya today.
“Before the MCO (movement control order) was implemented, we calculated our infectivity, the R0, at 3.55. Now when we look at the data today, we have managed to bring down the R0 to 1. We hope by April 15, we can reduce it to 0.9.”
The R0, pronounced R-naught, is a mathematical term that indicates the average number of people who will be infected by a disease from one contagious person.
This is the third day in a row the number of patients discharged have exceeded the number of new cases. Three deaths were also reported today, taking the toll to 70.
Dr Noor Hisham said he was on of the Health Ministry team that had advised Prime Minister Muhyiddin Yassin to extend the MCO, which has now been prolonged to April 28.
“What we advised the PM was to extend the MCO for two weeks to give us more time to carry out our activities and make sure we can contain and break the chain of infections. We need to bring down the R0 to below 0.9.”
He noted that analysts from JP Morgan and the Malaysian Institute of Economic Research had projected an exponential rise in cases by mid-April, but said those projections can be beaten.
“They based their projections on assumptions, but our analysis is based on reality. We are using daily data and keying it in as accurately as possible.
“Our predictions show that the trend is quite stable at the moment and we have not seen any exponential surge,” Dr Noor Hisham said.
He said data showed that the MCO has so far slowed down the rate of infection to levels similar to trajectories projected by the Health Ministry’s research team.
The extended MCO would serve as a “middle stage” to break the incubation period while the government will take a targeted approach with certain groups.
He cited World Health Organisation director-general Dr Tedros Adhanom Ghebreyesus, who had warned against ending efforts to restrict movements too early at the risk of a resurgence.
“Should that happen, more people will continue to be infected; the elderly and other high risk groups will be in danger while the health system may not have the capacity to cope with a rise in cases that could be more than what we are experiencing .” – THE MALAYSIAN INSIGHT

World Bank expects Covid-19 to have large impact on Malaysia’s GDP

KUALA LUMPUR — Malaysia’s gross domestic product (GDP) is projected to contract by 0.1 per cent to 4.6 per cent this year amid negative impact brought by Covid-19, according to the World Bank.
Its senior economist, finance, competitiveness, and innovation global practice, Smita Kuriakose, said the impact on Malaysia’ economy was likely to be large looking due to Covid-19’s adverse impact on foreign direct investment (FDI), commodities and tourism as well as domestic shocks due to the movement control order (MCO).
Globally, she said, trade had declined on par with most acute phase of the global financial crisis in 2008/2009.
Meanwhile, 75 million jobs are at risk in the travel and tourism sector, with two-thirds being in Asia.
“We must acknowledge the fact that recovery would not be uniform across sectors and even regions,” she said during a web-based seminar hosted by not-for-profit think-tank Research For Social Advancement (REFSA) titled “Flattening the Recession Curve: Saving SMEs and Preserving Jobs”.
She said ample initiatives need to be launched to helping the Small and Medium Enterprises (SMEs) amid the disruption in supply chain and demand.
According to Smita, local SMEs particularly still lag behind in utilising the digital platform and this needs to be addressed.
While the government had shown its commitment to react quickly and allocated substantial resources to respond to the outbreak, recovery was likely to take years, she said.
Bank Negara Malaysia (BNM) announced its latest GDP growth projection for 2020 last week, estimating a range of -2 per cent to 0.5 per cent. This is down from 2019’s 4.3 per cent growth.
“Once people’s confidence is restored, economic activity will rebound. And you will have all the pent-up demand and that will also drive recovery eventually,” BNM governor Datuk Nor Shamsiah Yunus said.
The central bank said the domestic growth was expected to improve towards year-end and subsequently in 2021 as risks from the pandemic subsided, in line with the projected recovery in the global economy.
In 2019, Malaysia’ GDP grew at 4.3 per cent. — Bernama
THE MALAYSIAN INSIGHT / BERNAMA

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