Melati Nungsari, an assistant professor of economics at the Asia School of Business, proposed that the government extend and widen its wage subsidy programme for this sector.
“To ensure economic resilience in facing the Covid-19 pandemic, we need to sustain these businesses.
“Financial assistance, such as wage subsidies, must be extended,” she said in a virtual discussion after the launch of the report, “World Bank Malaysia Economic Monitor: Weathering The Surge”.
The report’s latest edition looks at the individuals, households and businesses directly impacted by the ongoing pandemic.
Melati also proposed better access to credit for the private sector. However, she noted that businesses were afraid to take on more loans due to political and business uncertainties.
She said the role of the private sector must not be overlooked as job creation depended heavily on this sector.
On the matter of households and livelihoods, she said the existing aid packages announced by the government were insufficient, calling for more cash handouts to those affected by the pandemic.
She also urged the government to provide long-term measures for pensioners in the lower-income group, who have been disproportionately affected by the pandemic.
“The government must start thinking about the elderly. Also, as members of the public were allowed to withdraw their retirement funds (from EPF) during the pandemic, the government must start thinking of ways to reimburse their savings, along with other measures to protect this group,” Melati said.
She added that the government’s Covid-19 policies and SOPs had been “out of sync”.
“SOPs must be communicated in a timely manner in order to provide better outcomes.”
Speaking at the same event, Employees Provident Fund (EPF) chief strategy officer Nurhisham Hussein said the country’s fiscal policy must prioritise public health above anything else.
“Public health must come first, only then can we talk about economic growth and other demands.”
Meanwhile, national Covid-19 immunisation programme coordinating minister Khairy Jamaluddin touched on the issue of global vaccine inequity in his speech.
He called for the World Bank Group to be a critical voice for the developing countries in raising the issue of immoral “vaccine hoarding” by wealthy countries.
He said the global vaccine initiative, Covax, had failed to ensure a fair distribution of vaccine supply.