2020-03-27
According to Malaysian Economic Research Institute, if MCO keep extending, Malaysia might have 2.4 million people being unemployed. In the past few years, the unemployment rate in our country remained at about 3%. If the job of 2.4 million people is not guaranteed, the unemployment rate will rise 8 times.
What I want to emphasise is that during the period of movement control order, almost all domestic industries are shut down. SMEs face the pressure of fixed costs such as rental fee and employee salaries must be paid regularly, certainly they cannot sustain for too long. Although National Bank has announced that loans other than credit cards will be automatically extended for 6 months, the interest on the loans is still there. This help slightly on extends the life of their businesses.
If people’s production efficiency, technological research & development and consumption habits does not improve, no matter how much money government invests in the market, it will only temporarily stimulate the market and will not improve the national economy.
2.5 million unemployed population is definitely a national disaster. If the government cannot reacts quickly and the unemployment rate is out of control, it will causing national and safety issues. At that time, many people might leave their homes or country just to give their families a better life.