SOME RECOMMENDATIONS ON HOW TO SAVE MALAYSIA FROM THE MOTHER OF ALL RECESSIONS AND 5-10 MILLION BECOMING UNEMPLOYED!

by e.s. shankar

The general perception of the Rakyat seems to be that the new govt and its think tank (if there was one) did not deliberate sufficiently in depth on matters. It failed to seal all loopholes and explore all aid packages to employers and employees before announcing on 16th March 2020 its 'Restricted Movements Order' policy under the '1988 Prevention and Control of Infectious Diseases Act'.

It's incredible that 63 years after Independence, 61 of which were under UMNO/BN rule, and despite Nipah and SARS virus deaths, Malaysia is grossly underprepared to tackle Covid19. In 2015, BN announced with great fanfare the formation of the National Disaster Management Authority (NADMA). Now we have a disaster and no idea who's really in charge. The utter lack of a continuous blitz of warnings and advice on Covid19 via the Ministry of Communications & Multimedia (MCMM), Bernama, RTM, TV, MSM and govt websites is a clear sign of ignorance and incompetency.

Regardless, there are 3 areas the Semburit govt needs to address by yesterday:

1. SAVE THE EMPLOYERS & EMPLOYEES FIRST, AVOID THE MOTHER OF ALL RECESSIONS!

Many employers, especially those in the retail sector, suddenly have NO cash (or reserves) to pay staff salaries for March or April due to shut down of business premises, shopping malls and shops. The situation will become worse if Covid19 prolongs. The govt has billions of ringgit in reserves arising from TNB's 1.6% monthly electricity surcharge on consumers and Human Resource Development Fund (HRDF), Socso and Employment Insurance Scheme (EIS) contributions.

The normal usage of these funds are restricted by law. But at this moment of a pandemic and local and global emergency, it is simply a matter of an Executive Order by #NotMyPM for govt to release RM10 Billion to start with, to subsidise private sector employees and to bear at least, say, 75% of basic salary for 3-6 months. What else is Employment Insurance for?

Otherwise, as much as 5-10 million workers could be forced to go on no-pay-leave or retrenchment permanently! This could then see the mother of all recession setting in soon, hastened by businesses being unable to pay rent and creditors.

The silence from our new Finance Minister, Minister for MissEconomics and the (un)thinking tank is deafening!

2. GET THE ARMY MOBILISED

Malaysia apparently has a standing army of 400,000 excluding reservists. Surely, they and their fleet of trucks could be deployed to distribute fruits and vegetables from Cameron Highland to major markets, hypermarkets, supermarkets etc, instead of allowing them to perish?

No doubt it is not the ideal employment of the army. But, dammit, this is a once in a 100-year emergency and will justify that action!

3. FORCE THE BANKS TO DO NATIONAL SERVICE

Bank Negara Malaysia has ordered all banks to freeze home loan repayments for 6 months (but interest will still be charged at compound rates on monthly rest). This is good but does not go far enough.

It should be extended to individuals with hire purchase loans. ALL interest should be waived for 6 months as well. The consumer has been ripped off by banks with high interest rates now for years, not to mention ATM and bank charges while paying a pittance on savings account balances. It's payback time for the banks. They can survive even with losses of a billion or two over the next 12 months.

Everyone must badger and bug the PM and MP/Aduns and the govt to act quickly to save the economy and country.

I hope the Semburit PM and (wooden IKEA) Cabinet read and implement my suggestions ASAP. If they run out of ideas, I am available 24/7 for consultancy!😁😁😁

Please share if you agree! Tqvm