KUCHING: Socio-political analyst Associate Prof Dr Awang Azman Awang Pawi feels that the government must be ready to come up with more economic stimulus packages if the current situation is not handled well.
In addition to a crisis in food supply, he said that an employment opportunity crisis could be expected if employers and industries did not receive proper assistance.
“In the RM250 billion People-Centric Economic Stimulus Package (Prihatin) announced on Friday (March 27), no assistance is provided for the hotel and travel agency sectors even though they are among the worst hit by the Covid-19 pandemic,” he said.
He said that many businesses, including small and medium enterprises, (SMEs) were complaining of the lack of benefits for the business community.
He pointed out that the RM600 wage subsidy for three months for each worker earning less than RM4,000 did not depict the reality of workers’ salaries. Companies who have experienced at least a 50 per cent decline in income since January 1 are qualified for this wage subsidy.
“Employers have suffered huge losses as many of their operations had to be stopped as a result of the movement control order (MCO),” he told New Sarawak Tribune yesterday.
Awang said that inflation would also increase as the expenditures of the people surged within a short period and the high demand for goods could not be met by industries.
“The prices of goods will increase. The Prihatin package is comprehensive with total sum of RM250 billion, but the actual fiscal injection only amounts to RM25 billion,” he said.
He noted that other forms of assistance involved moratoriums on bank loan payments, the use of the people’s own Employees Provident Fund (EPF) supplies, and more from the use of existing public and private resources.
He said that those in the B40 (low income) and M40 (middle income) groups could benefit through various measures under the package such as loan deferments and cash aid.
He said that even though some may withdraw from their own EPF savings, little choice was available in this critical time especially during the MCO.
“This is the best option for the people thus far,” he said.
Awang also pointed out that the print media industry was also affected and reporters had to be at the frontlines every day.
