COMMENT | It should help cushion the impact of economic disruption now - and also promote economic transformation for the future.
| It is proving to be a turbulent start to the decade. Malaysia’s Gross Domestic Product growth for Q4 2019 slowed to 3.6 percent, from 4.4 percent during the same period a year ago. The protracted trade war and the recent Covid-19 outbreak will have far-reaching ramifications for an open, trade and tourism-reliant economy like ours.
While the stimulus package primarily aims to tide over workers and businesses through tumultuous short-term economic currents, the government should also evaluate these measures with an eye on the long-term, and look to promote a transformation of the economy to new growth sectors and higher productivity and prepare the workforce for the future.
Measures such as tax rebates or a tax moratorium for specific tourism sectors, and setting up an interest-free or low rate working capital fund for companies to bridge a period of lower cash flow without having to cut costs or retrench workers would both help ensure the survival of businesses affected in the short-term and prevent lay-offs.
It is also critical to support workers in the healthcare sector, either through one-off allowances or temporary wage subsidies, since they bear the brunt of the fight against Covid-19. “Shovel-ready” infrastructure projects, such as bus and ancillary services, including new buses, bus stops and pavements and dedicated traffic lanes, should be brought forward as a commitment by the government to improve liveability within the city and to ease the daily commutes of public transport users. These can be acted upon immediately and would result in short-term improvements to the economy.
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