COVID-19: Challenges and Way forward - By H.E. Dato' Kennedy Jawan Ambassador of Malaysia to Japan 5 November 2020

ASEAN-Japan Center – Embassy of Malaysia
          ASEAN Ambassador’s Lecture Series

COVID-19: Challenges and Way
           forward
       By H.E. Dato’ Kennedy Jawan
      Ambassador of Malaysia to Japan
            5 November 2020

Outline

I. Covid-19 situation in Malaysia
II. Malaysia’s Approaches in Combatting the pandemic
III. Impact of COVID-19 on Malaysia’s economy
IV. Economic measures
V. International Collaborations
VI. Malaysia – Japan relations
VII. Way Forward
VIII.Conclusion

Covid-19 Situation in Malaysia

1st case : 24 January 2020
Movement Control Order (MCO) : 18 March 2020 (6 Phases)
Currently in Recovery Phase until 31 December 2020 (RMCO)

              35,425 confirmed cases        Testing capacity:
                    (+1,032)               54,706 daily tests
                   271 deaths               (October 2020)
               (4 November 2020)

Malaysia’s Approaches

                                 Ministerial
                                 COVID-19
                                 Task Force

                                                      Screening,
     Border control                   1.            Investigation
       measures                                      and Contact
                                                       Tracing
                      6.                       2.
                             APPROACHES

                                               3.
    Quarantine        5.
  centers, health                                   MySejahtera -
clinics & hospitals
                                      4.             COVID-19
                                                      Contact
  Volunteers for                                    Tracing App
     Medics
                               Increased
                              laboratory
                             capacity for
                           COVID-19 testing

Impact of COVID-19 on Malaysia’s economy
Malaysia’s economy lost an estimated MYR 2.4 billion daily during   As of 1st May 2020, 67.8% of the total 4,094
the initial stages of MCO, a total of MYR63 billion when business   Malaysian companies responded no sales/revenue
activities were suspended at the time.                              during the MCO period

           Decline in
        Production and       Decline in
        trade activities    Consumption       Decline in
                           and investment       private             Tourism
                               activity      consumption        (Cancellation of
                                                                 “Visit Malaysia           Rise in
                                                               Year (VMY) 2020)    unemployment rates
                                                                                    (4.7%, August 2020)

  January-September 2020:
  Total trade between Malaysia and Japan decreased by 7.6% (in Ringgit terms)
  to RM88.9 billion (USD21.0 billion) when compared to the corresponding
  period of 2019                                                                                  Growth in
                                                                                                 online sales

Economic Measures
     Malaysia’s economy is on track towards recovery as domestic economic activities improve and exports increase.

The Government of Malaysia had put in place the PRIHATIN and PENJANA initiatives to jump-start the country’s economy

                                                Prihatin (Care) Penjana (Generate)

                                         PRIHATIN Economic Stimulus Package
• Special Prihatin Grant (GKP), a Government initiative of providing an MYR3,000 worth one-off financial grant to support the micro-
  SMEs in terms of cash flow during the pandemic
• Micro-credit scheme
• Reduction in foreign employees' levy payments
• Wage subsidy programme
• Discount on electricity tariffs
• Commercial Banks : introduced support packages (emergency loans) to support the SMEs, as well as flexibility for repayments of
  existing loans in addition to a decrease in the Policy rate
• 6 months moratorium on the repayment of personal loans and financing
• Additional funding to assist SMEs in sustaining business operations

Economic Measures
                          -Government of Malaysia’s move to jump-start the country’s economy-

            National Economic Recovery Plan – PENJANA (Pelan Jana Semula Ekonomi Negara)

• PENJANA has 40 initiatives worth MYR35 billion (USD8.3 billion)
• Investment fund to support the digitalization of Malaysian businesses by channeling funding from international investors into the
  local venture capital space
• Allocation to the Malaysian Investment Development Authority (MIDA) for promotional and marketing activities.
• Tax incentives for the Tourism sector, such as Tourism tax exemption, Income tax relief
• Incentives for the Property Sector to stimulate the property market and provide financial relief to home buyers.
• 100% sales tax exemption on locally-assembled passenger cars and 50% on fully-imported passenger car

Economic Measures

INVESTMENT INCENTIVES FOR COMPANIES RELOCATING TO MALAYSIA:

• 0% tax rate for 10 years for new investment in manufacturing sectors with capital
  investment between RM300 - RM500 million.

• 0% tax rate for 15 years for new investment in manufacturing sectors with capital
  investment above RM500 million.

• 2-day approval of Manufacturing License for non-sensitive industries;

• The establishment of Project Acceleration and Coordination Unit (PACU) in MIDA to speed
  up the implementation of investment projects in Malaysia.

International collaborations

            (i)         Sharing of information and
            exchange of ideas on countries’ experiences
            and issues in managing COVID-19 which has
            been declared as pandemic by WHO on 11
            March 2020.

            (ii)        WHO has also announced a large
            global trial called Solidarity and chose
            Malaysia as one of the countries to
            participate in a joint research to test an
            antiviral drug, Remdesivir as a possible
            medicine to treat COVID-19 patients.

International collaborations

JAPAN – ASEAN

• Special ASEAN and ASEAN Plus Three Summit on Coronavirus Disease 2019 (COVID-19),

• ASEAN Centre for Public Health Emergencies and Emerging Diseases

International collaborations

                     2020 Theme:
            Optimizing   Human   Potential
            Towards A Resilient Future of
            Shared Prosperity

Malaysia – Japan relations
Diplomatic relations 外交関係
     • Established on 31 August 1957
     • Establishment of the Embassy of Japan in Kuala Lumpur in September 1957 and the
       Embassy of Malaysia in Tokyo in January 1958.

Political 政治的関係
     • High level exchanges: Visit by His Majesty King of Malaysia (2019), Visit by then PM of Malaysia to Kyoto
         and Fukuoka (2019)
     • Cooperation in areas such as trade, investment, industrial development, human resource development,
         capacity building, tourism, education, ICT, cultural exchanges, science and technology.
     • Malaysia and Japan - “Strategic Partnership”.

Look East Policy (LEP) ルック・イースト政策
   • Initiated by the 4th PM Tun Dr Mahathir Mohamad in 1982
   • Cornerstone of Malaysia-Japan bilateral relations
   • Training and education programmes, trade and investment, education, human resource development and
      transfer of technology

Malaysia – Japan relations
  Economic relations 経済関係
  (in 2019)
       • Japan was Malaysia’s 4th largest trading partner in 2019.
       • Japan was Malaysia’s 5th largest export destination and 4th largest source of imports
       • Malaysia was Japan’s 13th largest trading partner , 13th largest export destination and 12th largest source of
          imports
       • January – September 2020: Total trade between Malaysia and Japan = USD21.0 billion (drop by 7.6%)

      • As at December 2019, 2,712 Japanese manufacturing projects          • Japanese companies in Malaysia:
        were implemented in Malaysia worth USD27.3 billion.                 • Panasonic, Nippon Electric Glass,
                                                                              Toray, Sony, Rohm-Wako and
      • Japan is the largest foreign investor in terms of implemented         Honda.
        projects in Malaysia

In the manufacturing sector, Malaysia ranked 4th among 17 economies on competitiveness as a manufacturing hub
(Study by KPMG)

Malaysia – Japan relations
  COOPERATION IN ADDRESSING THE COVID-19 PANDEMIC

• Assistance by the Japanese government via UNICEF, UNHCR and
  IFRC
• Provision of Avigan (influenza medication) for clinical research
  through UNOPS
• Supply of medical devices and modalities to Malaysia

             RECENT HIGH-LEVEL EXCHANGES

• Telephone call between FM Motegi Toshimitsu & FM Dato Seri
  Hishammuddin Tun Hussien (19 May 2020)
• FM Motegi’s visit to Malaysia (14 August 2020)

                       RESIDENCE TRACK

• Residence Track: Entry of Malaysians and Japanese nationals into
  Japan and Malaysia

Way forward
                         • Changed the way diplomacy, trade & investment activities are conducted
                         • Virtual, creative means of communication and conduct
 New normal              • Online business environment, teleworking

                         • Development of SOP and response plans for present and future outbreaks.
                         • Development of a vaccine/antidote for COVID-19
Opportunities            • Growth of digital sectors: Telework and video conference platforms, e-commerce, food
                           delivery, gaming, delivery, e-sport and edu-tech

New normal for export activities’ promotion [Malaysia – Japan]
• virtual exhibitions,
• virtual B2B Meetings,
• dissemination of trade information via My Export,
• Webinars
• trade clinics and virtual trade advisory for the Japanese business community and Malaysian companies
  that are keen to venture into the business scene in Japan.

Conclusion
• Development of vaccine
• Adherence to safety measures
• Relaxation of restrictions, border control measures
• Resumption of travel in stages
• Tokyo 2021 Olympics
• Home to many remarkable treasures and hidden gems.
• A melting pot of culture - Malaysia –Truly Asia
• Malaysia – Tourism, education, business and investment destination