Economic closure: More will 'die' due to poverty than COVID-19 - CME

KUALA LUMPUR: Any move to completely shut down economic activities if the COVID-19 case in the country fails to be controlled will only destroy the economy, said the Centre for Market Education (CME).

CME chief executive officer Dr Carmelo Ferlito said scientific evidence also showed economic closures were ineffective in preventing the spread of COVID-19.

"From an economic perspective, the decision to completely shut down the economy, including the manufacturing sector, is only driven by a weak understanding of how the economy works.

"Actually, the economy cannot be divided according to the private sector; on the contrary, it is a complex network connection.

"For example, if you allow poultry farms to operate but you close the manufacturing and transportation, then you do not allow the chickens to be slaughtered, packaged and taken to supermarkets.

"Overall, you allow the product to be produced but do not allow users to enjoy it.

"Forget the idea of a full economic closure which is not beneficial from a scientific perspective and will only lead to an increase in Malaysia's poverty level, apart from the number of people who 'die' due to poverty is higher than COVID-19," he said in a statement today.

Ferlito said better data analysis as well as communication to enable the public to make accurate risk assessments and orient their behaviour, is a more effective measure in fighting the pandemic.

"Data analysis strategies like this do not yet exist in Malaysia," he said.

Ferlito said Malaysia also needed to learn to live with the virus.

"The real problem is not to prevent infection but to focus on prevention and treatment that can reduce, minimise and ultimately reduce the mortality rate (which is currently low in Malaysia)," he said.

He also slammed the policy of the Movement Control Order (PKP) which was said to be not smooth so as to upset the investor community.

This is exacerbated by the political scenario that he considers confusing today.