The current rise of Covid-19 cases is sparking a debate on whether the MCO should be implemented again or not. Learn the impact of MCO reinforcement on our country.

Malaysia’s economy could be badly impacted if the Movement Control Order (MCO) is to be reinstated again, according to the Prime Minister, Tan Sri Muhyiddin Yassin, during a televised speech on July 20.

With new cases emerged and country’s daily Covid-19 infection have spiked to double-digits over the last few days with additional 13 new clusters throughout the Recovery Movement Control Order (RMCO) period which began on June 10, we are looking at the possibility of the MCO being enforced again to curb the spread of the virus.

“If there is a spike in new Covid-19 cases, this will prompt the government to reimplement the MCO, (which in turn will have a) massive impact on our economy. The closing of economic sectors can cause the country to lose at least RM2 billion per day and millions of workers to lose their income sources,” – Tan Sri Muhyiddin Yassin, Malaysia’s Prime Minister.

He also explained that all the government and non-governmental help under the Pelan Jana Ekonomi Negara (PENJANA) stimulus will go to waste if the MCO is reimposed because of the aim for the package to help boost country’s gross domestic product (GDP) by 3% this year.

As of yesterday (28 July), the latest number of Covid-19 new infections in the country is 39 cases, making the total active cases reached 212 cases. 

Impact to the economy and business

Academy of Science Malaysia fellow, Madeline Berma said that this matter could lead the government borrowing money to help stimulate the economy.

She added that small and medium enterprises (SME) will be most affected if the country has a second Covid-19 wave, followed by reinforcement of the MCO. SMEs will close and the unemployment rate would increase along with the poverty rate and also GDP ratio, to further widen inequality in the country.

“Therefore, we cannot afford to have a second wave of the Covid-19 as not only would it cost the country to lose billions of ringgit a day but would also push the economy to fall further into the domino effect, and risking people to lose jobs as well or taking pay cuts,” – Madeline Berma, Academy of Science Malaysia fellow

She also cited data that stated 42.5% of companies need more than six months t