Audio file

Confusion_Clouds_New_SOPs.mp3

Transcript
00:00:00 Speaker 10

This is a download from B FM 89.9 the business station.

00:00:05 Speaker 1

Good morning, you're now listening to the morning run with Russian Kinison Lindmark, an uong
sounding beaming over the Internet. Right now we're taking a look at the impacts of the CMCO on the
economy. Ever since its reimplementation last week, the latest bound of CMCO has been somewhat
confusing to say the least. When it comes to the SOP (Standard Operating Procedure).

00:00:22 Speaker 1

Oh PS, just days after announcing that, tighter controls would begin on October 14th. The governments
are only allowed mosques, gyms, an parks to reopen. It also increased the maximum number of
restaurant diners per table from two to four, leaving many affected nations confused over what the
rules actually are.

00:00:39 Speaker 3

So the latest announcement from the government for employees to work from home also faced similar.

00:00:43 Speaker 3

Issues of confusion as the rules were announced on a bit of a piece meal basis, leading to more
questions than answers. However, since yesterday senior ministered at the street is mild. Sabriya Cope
has come out to clarify that the work from Home Directive issued by Putrajaya only applies to those
involved in industrial and public sectors. But with infection cases still hovering at the 7 to 800 plus.

00:01:04 Speaker 3

Range many are expecting that the MCO in the Klang Valley will be extended once we arrive at the
October 27th deadline.

00:01:11 Speaker 1

The question is though, what effect will this have on the economy? For more thoughts on this we have
on the line with this Lawrence Dot head of research and development and ideas. The think tank.
Lawrence, thank you for joining us. All things considered, what effect will be current CMCO have on
Klang Valley's business activity and economy.

00:01:29 Speaker 4
Well, good morning well I mean certainly it will have some negative impact. I mean there are some
mitigating factors.

00:01:36 Speaker 4

Especially that obviously the the CMCO we've moved into is not as strict as the strictest version of the
MCO that we entered into there in in the spring, with move straightaway to sort of more calibrated
position that allows much more economic activity to continue.

00:01:52 Speaker 4

And the second mitigating factor is that, of course this is not the first time, so I think many, many
businesses that are able to organize themselves remotely have experienced that and have just some
extent optimize that. So hopefully they'll be less friction as we move into this new setting.

00:02:09 Speaker 4

Of course, as you were just sitting there in your intro there, those mitigating factors have been
somewhat undermined by the confusion around the rollout VSO team, which has unfortunately created
quite a lot of disruption over the last few days or businesses in terms of how they interpret the rules and
and how to operationalize them, I think.

00:02:29 Speaker 4

Many individual CEOs, managers pick the smaller businesses struggle to understand exactly how they
should implement the SOP, and so that's the cause of some disruption in the short term, but hopefully
the SOP settle down will be able to transition to a more than a stable state and reduce the impact of the
restrictions on the economy.

00:02:51 Speaker 3

So Lawrence, if the MCO does get extended as some people are anticipating considering the
continuously high level of Covid cases, should it be in its current shape and form? I mean what sort of
changes might you suggest?

00:03:05 Speaker 4

Yeah, I mean I think it's it's always very difficult to kind of offer specifics because the situation is
changing and the science updating, but I think we can learn a few lessons from the recent episode which
is around coordination and communications. So certainly a clearer coordination like within the federal
government and between the federal government and state and local government around,
implementation of SOP but also I think communication and I don't just mean you know having a single
version of the SOPs early and available. I think it's also about explaining the science and the thinking
because.

00:03:41 Speaker 4

I think where we've slightly gone wrong this time is that some of the rules seem to be arbitrary and
seem to be moving too much into dictating/detecting specifics, for example, within businesses about
who should Going to the office, you should stay home. How many and so on, and I think if the
government spend more time about the science behind the think (what are they worried about? Where
is transmission happening? What is the general guidance they want to give? and then allow some
flexibilities rather for businesses to accommodate within their own Operational model so not trying to
specify too directly exactly who should/shouldn't come into the office (example). So I think in terms of
communication is not just about having clear rules, clear structure. Well, coordinated is also about
expanding the thinking behind them to allow a little bit more flexibility.

00:04:34 Speaker 1

Lawrence moving away from the current situation right now there's been a call for a blanket loan
moratorium to be given to the B14 M 40.

00:04:41 Speaker 1

Groups, given that the targeted bank moratorium seemingly isn't as effective as it was meant to be, all in
the spirit of that that situation. What are your thoughts on this?

00:04:51 Speaker 4

I think I support the decision to cater the loan moratorium and to switch the targeted form of that
because I think that we cannot continue with these sort of extraordinary life support measures. I mean,
it's quite clear that I mean this isn't the situation isn't going to go away, and I think increasingly we need
to get from surviving it to adapting to it. Now that being said, I do think it's really important to have a
deeper and stronger social safety net than what we have currently, and then later you will know to
support which households that fall into hardship. But in terms of broader measures to sort of sustain the
whole economy, I think we have to start to cater those and start to focus more on adaptation. I think
when it comes to loan moratorium specifically, as I understand it, 40% of those who are benefiting it
from it have continued to, and it's still available to any of those who need it. So I think it yes, probably
we need to make sure the implementation is as soon as possible in the availability and access is there.

00:05:56 Speaker 4

But I think the principle of the policy is moving in the right direction as long as it happened in parallel
with a deepening of the social safety net in other areas so that we don't just continue on this loan
moratorium. But I think the problem we had with alone part with the moratorium pre October was that
blanket approach was just not going to be sustainable in the medium term.

00:06:17 Speaker 3

Now Laurence, another effect of the Covid 19 pandemic is that a continuing effect even is that our
borders are still closed. What kind of long term effects might this have on our economy other than of
course the decimation of our tourism sector?

00:06:30 Speaker 4

Yeah, it's an interesting point, because this is obviously then one of the areas where it's not Solely in
Malaysia's control, I mean if we open up our borders, it's not clear how many more people would come
in or be able to leave 'cause everyone closed their borders right? So it just it's a slightly more kind of
global shutdown in terms of international travel. No? I think as we mentioned, tourism has clearly taking
a significant hit and it's a good example, because I think the international tourism is not going to recover
until at the earliest, well into next year. So I think for tourism, we have to talk more in terms of
adaptation. How do we mobilize the domestic tourism market? And ultimately, if that cannot sustain
that existing tourism base, how can that pivot into other areas whilst keeping an eye on the future in the
international tourism will hopefully return, you know, within 18 months. in terms of other areas I think
we haven't seen kind of massive pinch points in terms of business travel, but there are definitely niche
areas where it's really starting to hurt. So I think as soon as we can move to the targeted measures to
open up business travel, or you know the green bubbles and so on that will allow some flexibility and
movement will be very welcome for sure.

00:07:50 Speaker 1

Lawrence, let's and let's wrap up on this one note here Budget 2021 is coming up. What are one or two
things that you want to see in that budget?

00:07:58 Speaker 4

Well, OK I.

00:07:59 Speaker 4

Did as I mentioned earlier. I certainly want to see a deepening of social safety net, particularly for, say,
informal workers where the current measures I don't think have been adequate, but I think then beyond
that, I I actually want to see some signaling of the the medium term direction of the economy. I think in
policy terms there's options the government can take, but also in terms of investment, I think we can
capitalize on the still relatively low interest rate to borrow to invest in infrastructure, particularly that
supports transition user uptake, a green technology, and things in those areas. But the signal that we're
not just the kind of pivot the management situation, that there is a broader Economic strategy beyond
that. we'll see Malaysia sustainably into its high income status.

00:08:47 Speaker 1

Alright, Lawrence, thank you so much for your thoughts this morning. That was Lawrence Todd, head of
research and development at the think tank ideas. And really, I think the first part of this conversation
was focused on the communication right. We all clearly understand the need for containment measures,
but it's really, really important that it's communicated In an effective manner, shown in what we? Some
of the things that you paid attention to the.

00:09:10 Speaker 9

Yeah, I think Laura like what you say. The communication is key, right? And we cannot deny the need to
flatten the pandemic curve. You can see infection rates are very high and you cannot have real economic
recovery without solving the health crisis either. But the question of course I think facing all countries is
there better balance and is communication with its citizens, part of that solution.

00:09:30 Speaker 9

So you look at some of the countries which have been very successful in this. I think NZ comes comes to
mind and the one thing I would like to know is that an I think I agree with Lawrence. Tell us the reasons
why these SOPs are implemented. Aren't we not mature enough to understand the reasons? And then
maybe we accept them better rather than just being told what is happening?
00:09:51 Speaker 9

And like the other thing also of course, please don't let it be piece meal. Let it be to complete so we can
make sense of it from the onset.

00:09:59 Speaker 1

Yes, definitely let us know what the science and thinking behind that and communicated in a more
effective manner.

00:10:05 Speaker 3

Absolutely, so we've also been running a poll on this subject on the BFM Twitter account asking you
what's your biggest grievance about how the MCO?

00:10:11 Speaker 3

At the CMC OH, has been communicated this time round by the government. 60% of our 230 votes have
said changing aesopi guidelines, 26% have said mistrust over enforcement. 10% have said too short
notice. Another 4% have said other and there are a couple of tweets, some of whom say yes. You know
it's inconsistent. It's a source is not true, necessarily trusted?

00:10:32 Speaker 3

But others who do underscore the point that yes, the CMC OH is a good move. In order to secure our
collective well being. And I think that's not. That's not the point that we are disputing here, because it is
absolutely necessary. It's just at this point in time was it, was it communicated. Could it have been done
better?

00:10:50 Speaker 1

Up next, we've got the Adm News bulletin, followed by the breakfast Grill, where one shining will be
speaking to Doctor Sanjay and welcome.

00:10:56 Speaker 1

CEO of said at the Sustainable Energy Development Authority on what Malaysia is doing for cleaner
more sustainable future. You're listening to listen to modern. Stay tuned B FM 89.9 thank.

00:11:06 Speaker 10

You for listening to this podcast to find more great interviews, go to B FM dot my or find us on iTunes.
Be FM 89.9.

00:11:17 Speaker 10

The business station.