The KLCI Index rose as much as 0.95% today, snapping a three-day loss. Sime Darby Bhd and Axiata Group Bhd led gains in the gauge.
The government shortened business working hours and cut public transport capacity to reduce movement, while allowing factories and other businesses to continue to operate.
The government is trying to strike a balance that will protect lives while ensuring that economic activity can continue, Prime Minister Muhyiddin Yassin said in an interview with state-owned RTM television on Sunday.
The economy was said to have lost about RM700 million a day when only essential sectors were allowed to operate under MCO2.0 in January.
“Life is important, but I also don’t want the economy to collapse,” he said. “If the economy collapses, I may have to spend half a trillion now. That’s what we have learnt over time. We have to balance.”
Businesses will only be allowed to operate from 8am to 8pm daily from May 25, senior minister for security Ismail Sabri Yaakob said on Saturday.
He added that about 80% of staff in the civil service and 40% of private sector employees will work from home, with the move affecting seven to eight million workers.
High-risk places will be told to shut down immediately while the usage of public transportation will be limited to 50% capacity, Ismail said.
Meanwhile, finance minister Tengku Zafrul Aziz estimated that the curbs could result in a 1% hit on the nation’s gross domestic product (GDP), according to a report from Bernama.
The economy contracted for the fourth straight quarter in the first three months of the year, albeit at a slower pace. The government and Bank Negara Malaysia (BNM) expect the economy to grow 6% to 7.5% this year after a 5.6% contraction in 2020.
The number of daily Covid-19 cases neared 7,000 on Sunday, a fifth straight day that infections have remained above 6,000.
On Saturday, Zafrul announced an additional allocation of RM200 million for the health ministry to procure screening kits and personal protective equipment.
“We will see how long this crisis continues,” Zafrul was quoted as saying by The Star. “If there is a need, then we will have to look at supporting (the economy) from a very targeted approach to the industries that are most affected by the pandemic.”
Less than 3% of Malaysia’s population have been fully vaccinated. That tally trails neighbours such as Indonesia and Singapore, and puts Malaysia at risk of falling well short of its inoculation goals for the year, according to data compiled by Bloomberg.
The government has said the pace would accelerate from June with more supplies coming in from Pfizer, Sinovac and AstraZeneca.
“We have to stay safe and it’s safest to stay home and follow the SOPs,” Muhyiddin said. “We should all practice self-lockdown.”