Proposals for battling the Covid-19 pandemic


FOLLOWING the government’s decision to implement a three-phase nationwide lockdown that will start with a “total lockdown” June 1-14, 2021, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) would like to propose the following intervention and targeted financial assistance measures, starting with the strengthening of current health prevention system and approaches.

More resources must be allocated to effectively implement the vaccination, including more aggressive sourcing of vaccines, and reach the target of herd immunity.

Mass testing and contact tracing

It has been proven that countries that have been successful in curbing Covid-19 pandemics through a combination of accelerating vaccination, large-scale testing and contact tracing, and quarantine, in parallel with strong social-distancing measures and effective enforcement of standard operating procedures (SOP).

The MCO and enhanced MCO must be accompanied by mass testing or pooled testing through boosting the screening capacity per day for the coronavirus, followed by insolation.

Combining test samples in batches, instead of running them one by one, has the potential benefits of stretching laboratory supplies, reducing costs and expanding testing to millions more Malaysians and foreign workers who may unknowingly be spreading the virus.

The supply of vaccines and vaccination rate

Speed up the inoculation programme in ensuring economic recovery, better health and far lower anxiety levels for citizens.

To secure faster delivery of vaccines, the National Pharmaceutical Regulatory Agency (NPRA) needs to expedite the approval of vaccines and the government must allow the private sector, including hospitals, to administer vaccines to expedite the process.

Open up the vaccination criteria by going to hotspots and vaccinating everyone, particularly in areas with high cases and densely populated areas with rising cases, whatever their age.

With the co-ordination and support of assemblymen, MPs and community leaders, the vaccination team can go to communities (particularly near hotspots first) and vaccinate everyone.

We need a lot more vaccination venues to for a wider reach. Every private hospital, dispensary and healthcare centre should be allowed to administer the vaccination.

In some rural and small areas, even mobile clinics and pharmacies may have to be turned into vaccination centres. Use the community halls, and schools as venues as well.

As the Covid-19 pandemic persists, the government faces the challenge of alleviating public apprehension about the benefits of vaccination, in order to achieve herd immunity.

Although many people are eager to get vaccinated, there are also significant proportions of the population who are reluctant or mistrustful of the vaccines and the vaccination process.

Good communication and publicity about the benefits of vaccines can help overcome hesitancy and promote acceptance.

It is a “whole of society” approach to break the chain of virus through participation in the vaccination programme and avoid the 3 ‘Cs’ (crowded places, confined spaces and close conversation), practising 3 ‘Ws’ (frequent washing, wear a face mask and warn of the symptoms).

Publicise information that countries with high vaccination rates have broken the link between Covid-19 cases and deaths; vaccination acts as a protective shield, keeping families and communities safe; and the sooner and more people vaccinated, the faster we can return to normalcy.

Step up public awareness campaigns in rural areas to increase motivation to get a Covid-19 vaccine by delivering effective, tailored messages targeted to segments of the population that have higher levels of vaccine hesitancy.

Information campaigns aiming to create behavioural change should include community-driven approaches by partnering with the public, the business community, civil society groups and political parties.

Encourage the vaccination uptake by disseminating timely, accurate, and transparent information through social and print media, the distribution of leaflets in multiple languages, and deploying frontline workers to engage directly with the community.

Media coverage is vital to influence “psychologically” and overcome fear.

Images of Covid-19 patients fighting for survival, overloaded hospitals, and suffering should move public to say “yes” inoculation.

While fear is an emotion we frequently experience as individuals, it can also be shared and social, one which circulates through groups and communities and shapes our reactions to vaccination. Like other emotions, fear is contagious and can spread swiftly.

The standardisation and uniformity of the SOP

Have a standardised SOP at federal, state and local authority level, ensure everyone adheres to it uniformly. Make the SOP available in Bahasa Malaysia, English, Mandarin and Tamil.

The SOP should simple, easy to follow, and comply with the 3 ‘Cs’ and 3 ‘Ws’.

The SOP should be colour-coded, according to the level of infectivity: red (widespread), orange (substantial), yellow (moderate), and green (minimal).

Lifting movement restrictions and reopening will be pegged to the vaccination rate and the level of compliance as well as the number of infections.

Proportional strict enforcement

Compliance is everyone’s business. Everyone must have a collective responsibility to comply with the recommended SOP and precautions. All political leaders must demonstrate good leadership.

Therefore, everyone must be compliant. The SOP must be strictly enforced; the rules and guidelines need to be clear, consistent and sensible in terms of fairness.

Proposals for the support of economy and business

Targeted financial assistance measures are needed to support sectors that require in-person interactions or travel have been hit particularly hard, including self-employed, micro business, and service industries such as tourism, restaurants and retailers.

Accelerate government spending

We urge the government to speed up the disbursement of the 2021 Budget allocation of RM323 billion, especially the RM5 billion for small and medium projects across the country, which have a wider economic multiplier on the construction and manufacturing industry.

This is crucial to support domestic demand, especially to benefit small and medium-size contractors, as well as supply chains such as suppliers, hardware businesses and the construction-related building materials industry.

Ease cash flow and financial burden

The 3Cs (cash flow, credit and cost) will remain the key concern of SMEs and micro businesses. Some businesses, which are still facing cash flow constraints will be worsened by a total lockdown.

Reaffirm the continuation of enhanced targeted repayment assistance (TRA). All financial institutions must continue to assure that the credit facilities remain available, including and not limited to TRA, but also other forms of assistance such as the rescheduling and restructuring (R&R) package.

The financial assistance must be made applicable to customers across various income groups and businesses regardless of the size and customers affected with simplified documentation requirements.

The deadline for the application and approval of R&R for business be extended to end December 2021.

Micro businesses and self-employed, as well as informal workers paid on a daily/weekly wage should be given more relief as the restriction on mobility affects this vulnerable group the most.

It is proposed that a one-off RM2,000-RM3,000 grant be given to eligible micro businesses and petty traders; plus a one-off cash assistance payment of RM500-RM600 to taxi operators, e-hailing drivers, hawkers and daily/weekly paid employees with registered employers.

The Wage Subsidy Programme (WSP) 1.0 and WSP 2.0 have saved 3.2 million jobs and ease the costs of 395,744 employers as of April 23, 2021.

The current WSP will expire by end June 2021. It is proposed to extend the wage subsidy by another six months until end December 2021.

For those not eligible for the WSP, the government can consider allowing employers to pay 70% of their employees’ wages in easing their employment cost to retain the workers.

As the HRDF levy exemption will expire in June 2021, it is proposed that to extend the levy exemption to end December 2021.

The reduction of levies on foreign workers, which lapsed in December 2020, had helped to ease operating cash flow of companies. It is proposed to provide 25% discounts to all companies with foreign worker permits that will expire in June-December 2021.

Extend a 10% discount on electricity bills for another six months (until December 31) to hotel operators, theme park, convention centres, shopping malls, local airline offices and travel and tourism agencies.

Other operating costs relief measures include delayed utility payments for SMEs.

Extend special tax deduction for providing a reduction of rental at least 30% on business premises for SMEs and non-SMEs to end December 2021 from June 30, 2021.

Postponing income tax instalment payments for three to six months (April to June/September 2020) for all SMEs, as announced in Prihatin, is a welcome relief.

It is proposed to reintroduce postponement of income tax instalment payments for a period of three months.

Provide blanket approval for the application of an extension of time to pay monthly or bi-monthly tax estimate instalments instead of an individual basis.

Allow the payment of balance of tax for YA 2020 and 2021 in six monthly instalments.

The workers’ vaccination programme

We believe that both public and private sectors must work together and mobilise resources to source and optimise effective vaccination services.

Given the urgency of expediting the vaccination rate, we propose that the government facilitate the chambers, industries and private sector in accessing vaccines, and make arrangement with private hospitals and clinics to administer them.

This concurrent move together with the government’s vaccination programme can achieve wider immunisation in the workplaces for the safety of employees.

With some businesses, especially SMEs, still struggling to recover their revenue, the government can consider providing a subsidy for the vaccination and tax deductions for employees’ Covid-19 vaccination costs.

Support for the property and automobile sectors

Home Ownership Campaign (HOC): to extend stamp duty exemption for property priced between RM300,000 and RM2.5 million subject to at least 10% price discount for S&P from May 31, 2021, to December 31, 2021.

Car sales tax exemption of 100% for locally assembled passenger cars and 50% for imported passenger cars has helped lifting passenger car sales in the past few months.

However, the exemption will end on June 30, 2021. It is proposed that the exemption can be extended for another six months to December 2021 to continue supporting big ticket item purchases.

Extension of operations for Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 (Act 829) until December 2021

The current extension of operations for Part II (Inability to perform contractual obligation) of the act will end on June 30, 2021.

The list of categories of contract outlined in the schedule of Part II, include construction-related contracts, professional services contracts, lease or tenancy of non-residential immovable property, event contract, contract by tourism enterprises, and religious pilgrimage-related contract.

It is proposed that to extend the operations of the act until December 2021 as many businesses and individuals face difficulties to perform contractual obligations. – May 29, 2021.

* Press statement from the Associated Chinese Chambers of Commerce and Industry of Malaysia.

* 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.


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