Is there a silver lining to the pandemic?
The Covid-19 pandemic has unprecedented implications for countries. Malaysia has been hit by this pandemic, although those recovering from the virus seems encouraging, somewhat flattening of the curve.
The population as whole has been affected in varying ways by the spread of the virus. However, the most vulnerable is the subaltern section of the society: workers, peasants, daily employees and not the least those men and women entrapped in the informal sector.
While the government had poured in funds to enable the vulnerable section of the population to keep their heads above water, there is only so much it can do. The private sector has been hard hit by the MCO.
Given the global spread of the virus, demand for manufactured good and services has taken a sharp deep. Penang a well-known destination. of foreign multinationals is particularly affected by the pandemic.
Two long standing garment factories have announced that they have no choice under the prevailing circumstances but to close down.
While the affected workers will be paid their termination benefits according to the law, the fact remains how the state is going to assist them in alternative employment.
Luckily, in Penang, we have the state agencies such as Invest Penang (IP) that is not only monitoring the fast changing employ situation, but also proactively engaging other employers as whether they will be prepared to provide employment for those who might loose their jobs.
Penang had always maintained a robust employment over the years; in fact in the last few years, unemployment was around 2.5 percent, lesser than the national average. In the past Penang had to face economic slowdowns, recession and retrenchment, but of course, nothing compared to what is happening now is a near devastation.
Meanwhile, if the government through the agency of Ministry of Industry and Trade (Miti) permits more industries and SMEs to begin their operations, major unemployment could be averted to some extent.
A two-pronged approach, one that enforces the MCO and the other that selectively that allows industries to operate might grow best option under the circumstances to prevent major dislocations in the economy.In comparison to the first phase of the MCO, the second and third phases, have allowed for more industries to operate.
It might be good sign to prevent a major and catastrophic unemployment, but also an healthier sign that all is not too bad on the economic front.However, the return to normalcy will only take place if we could joint hands to stem the tide of the Covid-19 virus
.At at least in the northern states of Perlis, Kedah and Penang, there is silver lining to the current pandemic. The cases of those afflicted with the virus has not risen and what is more there have been more recoveries. However, confirmation of these states as “Green” will to wait for the expiry of the time frame set.
I believe that the unemployment situation in Penang might not be as bad as one imagines. Yes, in anticipating and taking pro-active action, it is important to imagine the worst case scenario rather than to be overconfident.
But I do believe that Penang might have escaped the worst case scenario.
However, even if Penang recovers, the success of its economy will be contingent on the recovery of the global recovery as whole.
Such is the nature of our interconnectedness.
P Ramasamy is the deputy chief minister II of Penang
The views expressed here are those of the author/contributor and do not necessarily represent the views of The Leaders Online
