PUTRAJAYA needs to take a targeted approach by sector and worst-affected individuals to mitigate the impact of Covid-19 and lockdowns on the economy, rather than apply blanket strategies, former deputy minister Ong Kian Ming said.

The Bangi MP said targeted strategies had to be developed by all ministries and cannot be left to the Finance Ministry (MOF) and Human Resources Ministry (MOHR) alone.

“Now, with the implementation of the third nationwide movement control order (MCO) on May 10, 2021, the sectors and individuals who suffered the most in the first quarter of 2021 will also continue to bleed in the second quarter, perhaps in even more serious ways,” he said.

“What is needed now is a targeted approach by the government involving all ministries (not just the MOF and MOHR) to help the sectors and the individuals most affected by the lockdown in a strategic and targeted manner,” the former deputy international trade and industry minister said.

Policymakers must first understand the impact of the MCO on the various sectors and even sub-sectors, the DAP lawmaker added.

“For example, the agriculture sector as a whole grew by 0.4% but within this sector, there is great variance. 

“The rubber sector experienced a 12% contraction, the marine fishing sector and aquaculture sectors contracted by 9.6% and 5.2% respectively and even the oil palm sector contracted by 3.5%, probably because the drop in production due to foreign workers’ work permit issues that overwhelmed the increase in crude palm oil prices,” he said, citing a few examples.

The former deputy minister said understanding the MCO’s impact on the different sectors will help the government to adopt a differentiated, strategic and targeted approach towards those who were most negatively impacted industries and people in these industries. 

Another example is fishermen, with those using smaller boats experiencing greater loss of income compared to those with bigger boats and better networks with fish wholesalers and distributors. The second group of fishermen, Ong said, might not require as much assistance than the first.

As such, Prime Minister Muhyiddin Yassin should direct each ministry to come up with their own strategy and plan to assist, restructure and later revive each of the sectors and sub-sectors under their purview. 

Ong also said he was ready to help any ministry, free of charge, to discuss possible strategies to develop a targeted approach.

Malaysia today begins a nationwide 27-day lockdown, dubbed MCO 3.0, to curb the spread of the Covid-19 pandemic.

The decision was made after cases trended above 3,000 and 4,000 for a few weeks.

While there are numerous restrictions in place against travel, dining out, social gatherings and public events, the government is allowing almost all economic activities to operate with standard operating procedures in places. Critics, however, have said this will defeat the purpose of the lockdown to flatten the Covid-19 curve. – May 12, 2021.