2.2 Solution by the Government

Over 7.6 million cases and deaths have been happening globally since the Covid-19 outbreak and most of them came from the West countries, notably the United States. Instead, countries in the East are relatively low and have speedy recovery and one of these countries is Malaysia. Malaysian Government has taken several proactive steps to restore the national economy from this crisis. Thus, our main key is to stop the spread that will pave the way for us in getting our normal lives and our economy back on track.

The first step taken is flexibility for EPF contributors. Employee Provident Fund (EPF) is a compulsory saving and retirement plan for private sector workers in Malaysia where they are needed to contribute between seven to eleven percent of their monthly salary. On March 23, Prime Minister Tan Sri Muhyiddin Yassin made an announcement that starting from the month of April, contributors of Employees Provident Fund (EPF) aged below 55 are allowed to withdraw RM500 per month from Account 2 for up to 12 months. This initiative has benefit 12 million members of EPF who are expected to make withdrawals of approximately RM40 billion. Besides withdrawal, the government also has reduced the percentage of Employee Provident Fund (EPF) contributions from usual 11% to 4%. Through this way, it is possible for every household in adding cash in their hands.

Secondly, Malaysian Government has launched a smartphone application to monitor the spread of Covid-19.MySejahtera app was developed in collaboration with Ministry of Health (MOH), National Security Council, Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) and Malaysian Communications and Multimedia Commission (MCMC). It enables users to evaluate their health risks by asking whether users have any symptoms and tracking nearby testing hospitals or clinics. It also provides Covid-19 hotline number including a Virtual Health Advisory that connect users to a medical video consultation or known as Doctor On Call. MySejahtera assists the Ministry of Health (MOH) in monitoring Covid-19 spread and detects the virus trend. The application is able to collect every vital information for the government to come up with an early plan and effective countermeasures.

The third step is restructuring and rescheduling of loans. Bank Negara Malaysia has announced on March 25 where an automatic loan repayments moratorium for a period of six months by individuals including small and medium-sized enterprises (SMEs) will be started on April 1. The government has directed all of the banks to provide financial relief to borrowers by rescheduling loans as well as offering payment moratoriums. Banks were also ordered to facilitate moratoriums on corporate borrowings. A 100 percent exemption from stamp duty is given from March 1 until December 31 of 2020.

Furthermore, the fourth step was earlier on 27 February 2020, Malaysia government had introduced the Economic Stimulus Package worth RM20 Billion to ensure the outbreak is effectively addressed with economic risk associated. Not long after, Malaysia government announced for an additional measure to enhance the Prihatin Rakyat Economic Stimulus package which is on 27 March 2020 with the amount of RM250 Billion to strengthen the economy, as well as necessary measures to provide assistance to all Malaysians who are affected by the COVID-19 outbreak and the plight address includes senior citizens, OKU, bachelors, children residing in safe houses, Orang asal or indigenous communities, B40 and M40 groups of social class. Approximately RM128 Billions of funds goes to protecting the welfare of people and RM100 Billion to support business including SMEs and RM2 billion to strengthen the nation's economy.

Moving on to the fifth step taken was one of the industries that have been heavily impact due to the virus is the Malaysia tourism industry. Nevertheless, Malaysia government have done tax exemptions and deferments towards travel agencies, hotels, airlines, and together with businesses that is related in the tourism industry will be given a deferment of their monthly tax instalments for six months starting from 1^st of April 2020. Hotels are as well being exempt from service tax from 1^st of March 2020 until 31^st of August 2020. On the other hand, to show support towards the tourism industry, the government has allocated approximately 450 Billion in the form of travel discount vouchers and increasing the tourism promotion in the Middle East, Europe, ASEAN, and South Asia. Besides supporting the tourism industry, Malaysia government encourage to have more domestic tourist by having tax relief. A special income tax relief worth RM1000 is available to individuals for expenses on domestic tourism from 1^st March to 31^st of August 2020.

Lastly, to ensure food security during Movement Control Order (MCO) period, Malaysia government has announced an amount of RM1 billion allocated for the nation's food security fund. This is to secure the amount of food supply is sufficient during the critical time. In addition, Malaysia government provide assistance to local farmers, fishermen, livestock farming and fishery to encourage more support towards domestic production. A total of RM100 Million have been allocated to the development of food storage, distribution infrastructure, and integrated planting. However, Another RM100,000 and RM200,000 will be allocated to each farmers' and fishermen's organisation that are able to develop short term agro food projects to ensure food supply is sufficient in the upcoming months.

To conclude, Malaysia government have successfully done their responsibility as a government which is trying their best to provide welfare towards the citizens and economy of Malaysia with various methods and strategy in hopes to reduce the impact that have taken toll during the pandemic of Covid-19 towards the country as a whole.

QUESTION

Based on above statement provide effectiveness of the solution above