Question

Explain why government intervention is important to stabilize the market?

Due to the Covid-19 pandemic, the government of Malaysia has introduced several initiatives since April 2020 and Malaysia Budget 2021. Discuss how these initiatives give impacted you.

Answer 1

With the adverse effects of the COVID 19, the economy's vital sectors have significantly been affected; an economic decline has been experienced. The employees lost jobs in the private businesses and the companies were on the verge of a pandemic. The health guidelines emphasized by the national and the international like the World Health Organization are aimed at containing and curbing the spread of the pandemic. Therefore, the governments in the different nations must intervene to ensure the economies are re-established. Malaysia played a crucial role in protecting its citizens; several initiatives have been introduced since April 2020 and Malaysia Budget 2021. The Malaysian government announced a stimulus package of more than RM 300 million in early 2021.

 The budget estimations 2021 aim at taking care of the vulnerable, paving the way for sustainable growth, protecting, and creating jobs and livelihoods during the recovery phase. The efforts made co-currently align with the 5.8% to 6% budget deficit and the debt rates beyond the statutory limit of 60% Arfah, Aryati, et al. (, 2020). The workers in the diverse sectors are to benefit eminently from the strategies formulated. The other key strategy adopted is; personal tax relief for individuals who suffered job losses or salary reductions. Small and medium-sized enterprises (SMEs) are catered to by allocating funds via the development of financial institutions to facilitate their technology investment.

Additionally, double deduction training has been done to up-skill the workers. The retail sector was awarded the 7% lowering of the personal income tax rates; this aims at supporting the industry in 2021 and the following years. The strategies adopted by the government have significantly alleviated my life after the post-pandemic recovery phase. After it became hard to raise the profits needed to repay the loan acquired to start the business, I closed down my retail business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With the adverse effects of the COVID 19, the economy's vital sectors have significantly been affected; an economic decline has been experienced.