MCO 3.0 will ravage struggling businesses, say economists

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The latest round of the full movement control order is effective from tomorrow until June 7. FMTNews MCO CME Covid19

Economists say businesses cannot survive if there is no demand during a lockdown.

He noted that sectors like services, recreation and the arts contracted in the first quarter of the year as a result of the MCO imposed in January. He said with many people and businesses burning through their reserves in order to survive and the government already claiming there was little fiscal space left to provide assistance, creative measures would be needed to keep Malaysians afloat.“With no fiscal space, the government must now consider unconventional monetary policy, print some money and provide direct cash handouts or end the self-imposed fiscal limits and raise debt.

 

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