There is no denying that the tiny Covid-19 virus has already rocked the whole world, in terms of health, safety, economy and social in every country.

Today, after more than three months we are in the period of the Movement Control Order (PKP), our country is now in the recovery phase of the Covid-19 crisis.

Highlighting back on March 16, 2020, Prime Minister Muhyiddin Yassin made a speech on television and announced the PKP for Malaysia, as a preventive measure in response to the Covid-19 outbreak in the country.

Since then, Malaysia has gone through seven phases of the PKP, with all the firm actions recommended by the World Health Organization (WHO) in order to curb the Covid-19 epidemic effectively.

Phase 1 - 18 to 31 March

Phase 2 - 1 to April 14

Phase 3 - 15 to 28 April

Phase 4 - 29 to 3 May

Phases 5 - 4 to 11 May

Phase 6 - 12 May 2020 to 9 June

Phase 7 - 10 June to 31 August

Dewan Pemuda Ikatan Malaysia (DPIM) would like to touch on the implications of Covid-19 to the national economy in particular.

Among the indicators of the level of health of the local economy that can be used are the pioneer index (IP) or leading index and the consumer price index (CPI) or consumer price index.

This IP shows the annual growth rate and local business cycle, which directly shows the implications of Covid-19 to the domestic economy.

The consumer price index shows the purchasing power of the people and the implications of Covid-19 on the country's inflation rate.

Based on the latest report from the Department of Statistics Malaysia, IP declined further to negative 5.5 percent.

Prolonged disruptions in the economy continue to affect IP performance.

On a year -on -year basis, IP declined further to a negative 5.5 per cent in April 2020 from a negative 3.6 per cent in March 2020 driven by negative contributions from the number of residential units approved for construction and the number of new companies registered.

This situation shows that the construction sector is collapsing badly because there is no demand, while no new business is generated because each of them is struggling to save the existing companies from closing.

However, there was some positive momentum recorded by the expected sales value in the manufacturing sector which contributed 2.1 per cent to the change in the percentage of IP in the reference month as businesses were allowed to resume operations in May 2020.

DPIM supports the government's decision to open space to the economic sector during the Conditional Movement Control Order (PKPB) and now the Rehabilitation Movement Control Order (PKPP) for the country's economy to recover without compromising the people's security against the Covid-19 pandemic.

Taking into account the weaker annual performance of IP, it is expected that the economy will remain in a contractionary trajectory in the coming months.

The CPI declined 2.9 per cent in May 2020 to 117.9 from 121.4 in the same month a year earlier.

The decline in the overall CPI was driven by declines in the indices of transport (-20.8%), housing, water, electricity, gas and other fuels (-2.6%), clothing & footwear (-1.1%) and household decorations, appliances and maintenance ( -0.2%) which accounted for 45.7 percent of the total weightage.

However, food and non -alcoholic beverages continued to increase in May 2020 by 1.2 per cent to 134.3 compared with 132.7 in the same month a year earlier.

This group accounts for 29.5 per cent of the overall weighted CPI.

Various goods and services also showed an increase of 2.8 per cent followed by communication (1.6%), health (1.2%) and education (1.0%).

Consumer price index (CPI) data and statistics clearly show that people are now frugal in spending and only spend for personal and family survival for basic necessities like food and drink.

It is clear that the Covid-19 pandemic has greatly affected the Malaysian economy, especially the global economy.

According to Bank Negara Malaysia (BNM), Malaysia's 1Q 2020 GDP declined to 0.7% due to the impact of actions taken, both globally and domestically to curb the spread of the Covid-19 epidemic.

Overall GDP growth for 2020 is expected to be as low as -4.7%.

Finance Minister Zafrul Abdul Aziz mentioned that the country's fiscal deficit would almost double, increasing to around 6% of annual economic output by 2020 due to funding in government aid projects related to the Covid-19 pandemic.

Economic recovery depends on the public and private sectors being dynamically interconnected, for the social and economic good of the country.

During the PKP alone, 66% of businesses experienced a drastic decline in demand that made it difficult to maintain existing businesses.

The Malaysian Government has proactively taken many initiatives to stimulate and boost the economy, as well as boost the economy in the private sector, such as the Caring Economic Stimulus Package and the Generator plan.

Concerns are expected to contribute 2.8% to GDP growth.

International agencies forecast Malaysia's GDP growth of between 4.7% and 9%, with public health conditions under control.

Malaysia's economic performance is expected to improve gradually after June 2020 and record a positive recovery in 2021, supported by substantial fiscal, monetary and financial measures and progress in transport-related public infrastructure projects.

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