THE Centre for Market Education (CME) expresses concerns over the latest Malaysian government announcement on the movement-control order (MCO) extension in space (to the whole Malaysia) and time (until June 7). This is a striking contradiction with Prime Minister Muhyiddin Yassin’s statement, dated March 17, according to which a blanket lockdown would not be implemented again.

The government’s stubbornness over the MCO as the only way to fight the spread Covid-19 is, unfortunately, is in open contradiction with all the researches produced after the infamous Imperial College study published more than a year ago. No study or empirical evidence supported what the Imperial College was claiming and lockdowns have been proved the wrong way to tackle the problem. One of the latest studies showing that lockdowns are not effective was recently published by the University of Chicago (Working Paper No 2021-51 authored by Casey B. Mulligan). 

The list of countries where lockdowns managed to stop the spread of Covid-19 is long like the list of countries in which socialism was successful: zero entries. 

The suspicion arises that lockdown is the new socialism, which means the new way in which governments try to curb individual and social liberties. Why impose policies that have been proved unsuccessful worldwide with zero examples of success? At this point it is pretty obvious that it is no more a matter of Covid-19 but something else. Because if it was for Covid-19, to apply lockdowns would be the proof of having learned nothing over the past 15 months. 

When you tell socialists that socialism never worked, they object that “that was not true socialism” and that “we need more socialism”. Similarly, when lockdowners are faced with the fact that lockdowns do not work, they reply that “that was not a real lockdown” and “we need more lockdowns”. 

Striking similarity, isn’t it? 

Coming to the business situation, “I think this has been one of the craziest weeks ever: implemented policies have changed from day to day and from minister to minister. Businesses are frustrated by this lack of consistency and nothing like confusion is bad for businesses. To this you have to add the sense of exhaustion over an economy forced to work on a stop-and-go strategy”, said Dr Carmelo Ferlito, CME’s chief executive officer.

The current situation will be devastating for the hospitality as well as the food and beverage industries. But not only for them. Businesses are all related… You are allowed to sell chicken, but restaurants, hotels and canteen are not there to buy your product. You are allowed to produce school desks, but school are not there to buy your product. You are allowed to produce mechanic products for airplanes, but the aviation industry is not there to buy your product. 

The economy, the market, is made of supply and demand. You cannot hope businesses will survive because you allow the supply side to operate if you shut down demand. 

This is just basic economics and basic business experience. And yet here we are trying to do more of the same hoping for different results. The outcome is obvious. 

In conclusion, CME believes that a different strategy is possible and needs to be based on mass testing for early detection. With early detection, severe cases and asymptomatic transmissions can be avoided, and Covid-19 cured with normally available medicines, as explained by the doctors of Ippocrate Group. – May 10, 2021.

* The Centre for Market Education is an academic and educational initiative aiming to promote pluralism and multidisciplinarity in economics learning.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.