Traversing the tightrope: the socio-economic impact of covid-19 & reform of social protection policies in Malaysia

• Main Authors: Syed Azman, Syed Marwan Mujahid, Nordin, Ikmal, Ng, Ming Yang
• Format: Article
• Language: English
• Published: Friedrich-Ebert-Stiftung 2020
• Subjects: H96 Public policy (General), Policy sciences; HB Economic Theory; HG Finance
• Online Access: http://irep.iium.edu.my/88106/1/Marwan%20et%20al%20%282020%29%20Traversing%20the%20Tightrope.pdf; http://irep.iium.edu.my/88106/; http://library.fes.de/pdf-files/bueros/indonesien/17094.pdf

Executive Summary The COVID-19 pandemic hit Malaysia amidst a period of political turmoil and uncertainty as political parties scrambled to form a new coalition government. Nonetheless, Malaysia fared relatively well, with swift policy responses that managed to flatten the curve of infections from overwhelming the healthcare system. However, in balancing the dilemma of protecting lives and livelihoods, the movement control order restriction disrupted economic activities which resulted in plummeting headline economic figures and a bleak economic outlook. The crisis laid bare the insufficiency and inefficiencies present within economic and social safety nets in Malaysia, especially towards vulnerable groups such as the poor, self-employed, women, youth and migrants. The government has responded with various monetary and fiscal stimulus measures to tackle the economic downturn but faced criticism that these responses are inadequate and does not address fundamental socio-economic deficiencies. Arguably, there is still sufficient room to manoeuvre and implement effective medium and longer-term policy responses to address socio-economic structural issues. The COVID-19 crisis provides an opportunity for Malaysia to revisit and reform its economic and social protection policies to become more equitable and robust in the future. This not only requires policies, but also the political will, to put them into practice.