ALLOWING economic sectors to operate based on an “essential versus non-essential” list is no longer working and Putrajaya needs a different approach in handling the economy during the Covid-19 pandemic, PKR said.

The party said the essential and non-essential classification of industries and services has failed to work as after weeks of movement restrictions and changing standard operating procedure as “all non-essentials have become essentials”.

It conveyed this among other views to Finance Minister Tengku Zafrul Tengku Abdul Aziz, who was recently appointed coordinating minister of the National Recovery Plan. The meeting was held at Tengku Zafrul’s office in Putrajaya on July 14.

Subang Member of Parliament Wong Chen, who is also PKR’s investment and trade bureau chairman, said the group of party MPs suggested a new re-classification for industries and services, determined by which economic activities are high-risk or low risk.

“To achieve this, the government has to build the data collection infrastructure for risk assessment now, and then back it by frequent, periodic mass testing of industries and services,” Wong said in a statement today.

“The government must mobilise data scientists to do detailed modelling and disclose to the people whether the option for a full total lockdown of another three to four weeks can still work, or has the window of opportunity closed for good?

“The government needs to also apologise for the half-baked lockdowns over the last eight weeks, which had thousands of MITI exemptions,” he said, referring to the Ministry of International Trade and Industry, which decides which economic sectors under manufacturing are allowed to operate during the lockdown.

PKR also proposed that protecting jobs via wage subsidies should be given priority to stop insolvencies and unemployment.

“Many companies are facing extreme cash flow problems and mass insolvencies will be a reality in the next two months if things don’t quickly improve.

“As such, a full deployment of wage subsidies is needed now and the budget allocation must be substantial; at least a RM30 billion budget for 2021,” Wong added.

Putrajaya’s wage subsidy programme has been expanded under the latest Pemulih economic stimulus package to include workers at no salary cap, but it is only up to 500 workers per employer, at RM600 per worker, and for four months only.

For employees working from home, their Internet bills and purchase of computers should be subsidised, Wong said.           

As for offices and factories where workers are required on-site, there should be more incentives for employers to redesign workspaces with better ventilation, given the airborne nature of how Covid-19 spreads, especially the Delta variant.

“(There should also be) more focus and resources on the needs of the migrant workforce on their working conditions and living quarters, to stop hotspots from developing,” the PKR MPs told Tengku Zafrul.

In terms of order of priority in the government’s economic aid, they listed wage subsidies first, followed by direct cash transfers, and lastly, grants.

Wong said PKR’s proposals took into account that Covid-19 would not be a “short-term crisis” and the pandemic may last for “another year or two”.

“While we can hope for the best, we must prepare for the worst possible scenarios.”

Besides Wong, other PKR MPs who met with Tengku Zafrul and deputy finance minister Mohd Shahar Abdullah were Shamsul Iskandar Akin (Hang Tuah Jaya) and Fahmi Fadzil (Lembah Pantai). Wong said Gopeng MP Dr Lee Boon Chye who was not present had also provided input on public health policies. – July 16, 2021.