Question

write an introduction for this topic Stock investment opportunities in a recession market (covid 19) in malaysia

Answer 1

Answer - The whole world is in a state of panic. Only a couple of countries have clarity and clear communication on the steps they will take at each stage of the spread of the coronavirus Covid-19. Malaysia is not one of them.

The Prime Minister has announced, in response to a major spike in Covid-19 cases, decisive steps from 18-31 March to arrest the spread of the virus. This “lockdown” is a welcome statement of intent but there must be some indication of what will happen next if the epidemic still is not checked. It would help the people to prepare themselves.

It is also good the National Security Council (NSC) will be meeting daily to monitor the situation. The Prime Minister will chair this meeting. With the Economic Action Council (EAC) and all his other responsibilities, the Prime Minister will be stretched in the performance of his duties.

There should therefore be a small committee headed by a scientist to advise the Prime Minister on the steps that need to be taken, so that NSC meetings will not be discussing issues and making decisions on the hoof. The background work would have been done.

In Singapore there is a Covid-19 crisis committee comprising a number of ministers, all highly competent, but I would not suggest we do the same in Malaysia. Our ministers have not even mastered the brief in their ministries, let alone have the ability to address a crisis objectively without weighing political impact.

Nobody believes you if you said blithely everything is under control and there is a sufficient number of beds to treat Covid-19 patients. With all that is happening around the globe, what people want to know is what would happen if there was a huge spike.

With a staggering number of new cases in the last couple of days, bringing the total to 553 as of yesterday, there are now calls for a lockdown, going beyond the containment that has informed Malaysia’s approach hitherto. There is already panic buying and empty supermarket shelves.

At what levels would our capacity and resources be stretched? What are we going to do to ensure we do not reach those levels? What stage are we at, in containing the virus, and what are the next steps precisely — no waffling — we will take to control it should the numbers of the afflicted spread further and faster than at the first stage?

The number of deaths in Hubei province where it all started is about 3,000 but the situation in China is stabilising. It might be useful to go through what China did, even if belatedly, to achieve this.

Outside China, the number of deaths is increasing, especially in Italy and Iran. What did they not do and have not done? In America, unsurprisingly with Trump, the situation is a shambles. Blame the foreigners is his instinctive political approach. It does not address the spread of the virus in his country.

There are some in Malaysia who are tempted to do the same as the Trump blame game. This all coming from outside does not get us anywhere as it has not America.

The WHO has officially declared the spread of coronavirus a pandemic. In a global population of 7.5 billion, the top end estimate of deaths by scientists is 75,000.

Malaysia must take a rest from all the politicking that has been taking place and apply all that energy, in an organised and more calm manner, at getting a hold on managing the epidemic.

Competence and clarity give confidence. Mushy statements without clear facts promote panic. Panic will absolutely stretch resources and screw up the economy even further than Covid-19 has already.

The impact on the economy is debilitating. It beggars belief for anyone to say the Malaysian economy is doing just fine. It is not, has been slowing down and will slow down further with the dislocations and contractions caused by the pandemic.

There is a credible forecast of a 80 per cent chance of a global recession, as bad as if not worse than that which followed the 2008 Western Financial Crisis.

Much has been said about the collapse of financial

markets but more impactful on ordinary people is what is happening in the real economy: loss of jobs and incomes, being put on part-time work or asked to take leave without pay.