PETALING JAYA: The National Recovery Plan announced by the government recently should be more specific on how we are to start our economic recovery, according to economists.
Sunway University Business School professor of economics Dr Yeah Kim Leng said the government needs to come up with a plan similar to the one put forward during the Asian financial crisis.
He said the current plan makes a lot of assumptions and is skeletal but is better than having no plan at all.
“This will now force the government to come up with strategies and measures to deal with economic growth.”
The government has to plan for the wellbeing of the health and social sectors as well as the public. It should not only focus on how to overcome the health crisis but also meet the public’s expectations, he added.
“It must be a realistic plan for our post-Covid economic development which will also meet the new realities on the ground as our social, economic and political landscapes have seen huge changes.”
One major change is in the global supply chain and it has shown how vulnerable countries are as they rely on a few countries and companies to meet their needs, he said, citing as example the global shortage of microchips.
Yeah said there is a need to reconfigure the nation’s economy to ensure that Malaysia is not over-reliant on other countries to meet its food, energy and other major needs.
“We need an economy that is resilient and able to deal with major global events.”
Economist Dr Barjoyai Bardai described the National Recovery Plan as one that deals with how the nation would tackle the current crisis.
He said it gives a schedule for the country to open up its economy as it goes through each phase of the plan.
The nation first has to stem the spread of Covid-19 before moving forward, Barjoyai pointed out.
It may be good for businesses and the public to be given an exit plan, he added. “People and businesses cannot just be sitting around for the next six months. A plan is needed to help all those who are vulnerable.
“The government should use this time to prepare a comprehensive economic recovery plan as it cannot be done overnight.”
Initiatives should be put in place to help the country’s 25 million micro businesses, he said.
