KUALA LUMPUR: The International Trade and Industry Ministry’s decision to allow additional economic sectors to operate during the Movement Control Order (MCO) period is another positive step and strategic, economists said.
This would provide vital support to ensure business and financial sustainability, while still adhering to restrictions under the MCO as the country fights the Covid-19 pandemic, they added.
International Trade and Industry Minister Datuk Seri Azmin Ali yesterday agreed to allow additional economic sectors to operate in phases, subject to compliance with health guidelines and the MCO.
The sectors include automotive, machinery, aerospace, construction and services related to construction work, science, professional and technical services, social health services, hardware shops, electrical and electronics and laundry services.
Bank Muamalat Malaysia Bhd economist Izuan Ahmad said the sectors were crucial to sustain the export-oriented segment of the economy to contribute to the country’s revenue and growth, as well as provide important services to the public during the extended MCO period.
“It will create a win-win situation for business entities, as well as the public in navigating through this challenging period. Of course, operations within a strictly regulated environment is pivotal to avoid complications from the virus outbreak.”
AmBank research chief economist Anthony Dass said the sectors would help drive the economy, given the strong positive forward and backward linkages.
“By rolling out the sectors, it will benefit small- and medium-sized enterprises and help create jobs.”
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the move would allow economic activities to gradually happen, hence creating demand for input factor such as labour.
However, he said, strict adherence to social distancing measures and health procedures must be upheld at all times.
“Therefore, monitoring by the authorities and relevant agencies must be robust. This is to avoid risks of a sudden spike in the number of new infections.”
IQI Global chief economist Shan Saeed deemed the decision “strategic and positive for the market”.
He said businesses would be happy that the government was committed to opening up the economy so that it should be business as usual for all.
“If we can draw parallels with China, consumption or demand will be very strong. It will pick up very sharply and help support gross domestic product growth.
“The move is well appreciated and welcomed by the market. We believe it will give a real boost to the economy and all market players and major industries that are opened up to have a faster momentum and growth trajectory.”