RM1 trillion price of not reopening the economy

The Governor of Bank Negara said the banking and financial system would collapse if the economy was not restarted, Muhyiddin Yassin said.

MUAR: The government was warned of a collapse of the banking and financial system, causing RM1 trillion in losses, if the economy was not reopened because of the Covid-19 pandemic, Prime Minister Muhyiddin Yassin said.

He said the warning was given at a meeting of the National Economic Action Council, which he chaired every Monday.

“The Governor of Bank Negara Malaysia told me then that if we didn’t do anything about it the next day or month, if we did not do anything (about it) and did not allow the economy to get back to normal, the whole financial and banking system will collapse.

“If that were to happen, the value of the losses to the banking and financial system would be about RM1 trillion,” he said at a constituency meeting in Pagoh today.

Muhyiddin, who is MP for Pagoh, said the country’s economy needed to be restored by building a stronger foundation.

“We need to improve our economic activities in the near future. When we implemented the movement control order, all factories stopped operations not just for a day but for months, every day our businesses and economy remained idle,” he added.

However, he said some of the government’s challenges in boosting the economy, arose from the psychological fear of Covid-19.

“Even in my own family, there are those who are still hesitant to go to a restaurant, for example… whether it is safe or not. There is a psychological blockage for being confined at home for over three months, making us not prepared to go out,” he said.

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