Govt must not be hasty in finding balance between health and economy

PETALING JAYA: The government must exercise prudence in developing a holistic Covid-19 exit strategy and not make rash decisions that could eventually backfire.

This appears to be the common sentiment among economists and politicians, as the country looks to recover from the impact of the Covid-19 pandemic and the subsequent movement control order (MCO), which is expected to be rescinded on May 12.

Economics professor Dr Yeah Kim Leng said while an exit plan is necessary to provide certainty and allow businesses to make preparations, it should be done gradually without neglecting the health aspect.

The Sunway University Business School academician said the government should practise caution in coming up with a strategy to avoid a resurgence in Covid-19 cases.

“The government should spell out a progressive exit strategy and roll it out gradually rather than in one stroke. The key is compliance, among businesses and the public, to all the SOPs and guidelines.

“By phasing in the strategy bit by bit, it will allow the government to monitor public behaviour and enable authorities to play their roles more effectively, and ensure there is no subsequent Covid-19 wave.

“If you look at our conditional MCO that was enforced on May 4, to an extent it can be considered a form of an exit plan. So in a way, we’ve already started it,” he told theSun yesterday.

Former deputy minister Ong Kian Ming said a good exit strategy should be well planned, well timed, and have good communication with relevant stakeholders.

He said this was to ensure the industries and business community have time to systematically plan how to restart their businesses, and for the public to have confidence that it is safe to return to work or engage in other activities.

He cited allowing of certain sectors to operate under Phase 3 of the MCO and the recent CMCO, as examples of an exit strategy that was not planned, timed and communicated well.

“If proper planning had been done, like giving businesses one week to prepare, I think the public and businesses would have been better prepared to resume their activities.”

Subang MP Wong Chen said the government should have identified certain criteria that had to be met before an exit strategy was introduced, and said this has to be made public to ensure transparency.

“There are four crucial milestones (the government) has to identify: the number of new cases, preparedness of our healthcare, contact tracing ability and mass testing capability.

“If they can meet at least 80% of each of these criteria, then they can carry out their exit plan. But they have to share the data with MPs for us to analyse and question the policies,” he said.

Economist Tan Sri Ramon Navaratnam said there should be no rush in introducing an exit strategy as long the government could find a “happy balance” between both the economy and health.

He said the steps being taken so far, including allowing almost all businesses to resume operations, were appropriate although it should refine its monitoring mechanism.

“This is important so the government can take swift action should there be a new case in a particular area. But I think the government has gotten the balance right so far. They just have to keep it up.”

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