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Thursday, 23 April 2020 13:37:13 WIB

Malaysia’s Lockdown Policy: Its Impact on the Social and Economic Life of the Community


The Webinar Series 03 raised the theme “Malaysia Lockdown Policy: Its Impact on Social and Economic Life of the Community,” featured Mr. M. Mahbubi Ali, Ph.D, Head of Islamic Economics and Finance Research at the International Institute of Advanced Islamic Studies (IAIS) Malaysia. Organized by the Sharia Financial Management Study Program, Webinar Series 03 took place on Monday, April 13, 2020, at 10:00 WIB via the Zoom application. The event was moderated by Mrs. Sunarsih, the Secretary of the Sharia Financial Management Study Program.

Given the current global pandemic, It is conceivable that pandemics have occurred in Islamic history as well. During the webinar, Mr. Ali Mahbubi elaborated on the history of pandemics in Islam, providing a detailed explanation of various pandemic terms, such as:
1. The Shirawayh Plague. This plague is considered the first pandemic to occur among Muslim communities in 627-628 AD in the capital of Persia.
2. The Amwas Plague. This plague initially struck a small village named Amwas located between Jerusalem and Al-Ramlah in Palestine in 638-639 AD. Approximately 25,000 people died, including those close to the Prophet Muhammad.
3. The Kufah Plague. This plague occurred in Kufah in 669 AD during the reign of Caliph Muawiyah of the Umayyad Caliphate.
4. The Al-Jarif Plague. This plague ravaged southern Iraq through Basra like a deluge, believed to have taken place in 688-689 AD. Over three consecutive days in April 689 AD, approximately 70,000, 71,000, and 73,000 people succumbed to the disease.
5. The Fatayat Plague. The al-Fatayat plague occurred in Basrah, Kufah, Waset, and Damascus in 706 AD. It was named the Plague of Fatayat because most of the victims who died were young female servants and boys.
6. The Al-Ashraf Plague, fittingly named, primarily affected men from the noble class. This plague took place in Iraq and Syria in 716 AD during the rule of Al-Hajjaj.
7. The 743-744 AD Plague. This plague reportedly killed 100,000 people in the Mesopotamia region and 20,000 people every day for a month in the Bosra and Hawran regions.
8. The Salam Plague. The outbreak of this plague occurred in Basrah in 750 AD and Damascus in 754 AD. The most severe outbreak occurred during Ramadan with a death rate of a thousand per day. Approximately 70,000 people died on the first day, and a similar number died on the second day.

Mr. Ali Mahbubi not only delved into the history of the global pandemic and its impact on Islamic history but also provided an update on the global Covid-19 situation as of April 13, 2020. At that time, the worldwide tally of Covid-19 cases had surged to 1,844,410, resulting in 113,672 deaths and 421,497 recoveries across 210 countries, including Malaysia. Specifically, Malaysia had recorded 4,683 cases, with 153 new cases reported on April 12, 2020. Furthermore, there were 2,499 patients still undergoing treatment, while 2,108 individuals had recovered, and 73 had succumbed to the virus. It's worth noting that these figures were reported prior to the implementation of a lockdown by the Malaysian government.

Malaysia, also known as the “Negeri Jiran” (neighboring country), reported its first case of coronavirus infection on January 25, 2020. Since then, the number of Covid-19 cases and fatalities has continued to rise, prompting the Malaysian government to impose a lockdown in the country. In Malaysia, the lockdown is referred to as the MCO (Movement Control Order). The MCO 2020, or the Malaysian Movement Control Order 2020, denotes the restrictions implemented as a preventive measure against the Covid-19 pandemic by the federal government of Malaysia on March 18, 2020. In Indonesia, this is known as the Large-Scale Social Restrictions (PSBB). This event is commonly referred to in both domestic and international media as the closure of parts of Malaysia or the Malaysian closure. The procedures implemented by Malaysia are as follows.
1. Prohibition of mass movement throughout the country, including religious, sports, social, and cultural activities.
2. Sanctions will be imposed on all Malaysians traveling abroad. For those who have just returned from abroad, they must undergo health checks and undergo quarantine (or self-quarantine) for 14 days.
3. Malaysians are prohibited from leaving the country, while restrictions are imposed on the entry of non-Malaysian citizens into Malaysia.
4. All early childhood education institutions, state and private schools, including boarding schools, international schools, tahfiz centers, as well as primary, secondary, and pre-university educational institutions, as well as state, private, and vocational training centers, must be closed.
5. Closure of all state and private higher education institutions (IPT) and national skills training institutions.
6. Closure of all institutions, both in the public and private sectors, except those involved in essential services.

The decision to implement this lockdown does not come without risks and impacts across various sectors of life. There are several consequences resulting from this lockdown. In the economic sector, for instance, Mr. Ali Mahbubi pointed out that the Central Bank of Malaysia projected the country’s economic growth to range from -2% to 0.5%. The bank announced a 100 basis point reduction in the Statutory Reserve Ratio (SRR) on March 19. Furthermore, the World Bank has revised Malaysia’s GDP growth rate from 4.5% to -0.1% in 2020. Small and medium-sized enterprises (SMEs) in the country have also indicated that they anticipate zero cash flow for the next three months.

In addition to the economic impact, the social sphere has also been significantly affected by Covid-19. The economic crisis has led to social repercussions, with people struggling to access essential food items such as rice and other necessities during the lockdown. Not only are there food shortages, but many people in Malaysia have depleted their savings on living expenses over the past few months. Moreover, Indonesian citizens residing in Malaysia have also been affected. Reports have emerged of an Indonesian citizen attacking a police officer on duty in Putrajaya, Malaysia. Additionally, some Indonesian migrant workers have resorted to theft in order to alleviate their hunger.

Given these circumstances, the Malaysian government has responded effectively. Under the slogan “No Group Will Be Neglected,” the government has allocated RM 250 billion, with RM 100 billion earmarked for supporting business activities, RM 22 billion to bolster the economy, and RM 128 billion to safeguard the welfare of the people. The economic stimulus package stands as the Malaysian government’s foremost priority for its citizens, with the overarching goal of protecting their well-being.

The government's measures to combat the Covid-19 pandemic are as follows:

1.    An additional RM1 billion allocated to the Ministry of Health for the purchase of equipment and improvement of services in combating Covid-19.
2.    Rapid test costs up to RM300 covered for police and medical certificate holders.
3.    Premium payments deferred for families affected for 3 months.
4.    Special allowance of RM600/month for doctors and medical staff commencing from April 1, 2020.
5.    Special allowance of RM200/month for military personnel, police, customs staff, and civil defense commencing from April 1, 2020.
6.    National assistance of RM1,600 provided to households with an income of less than RM400 per month.
7.    National assistance of RM800 provided to individuals aged 21 and above with an income of less than RM200 per month.
8.    National assistance of RM250 provided to individuals aged 21 and above with an income of RM2,001 to RM4,000 per month.
9.    Assistance of RM200 per person for high school students.
10. RM25 million allocated for food, healthcare, and housing assistance, for shelters, NGO assistance centers, and social entrepreneurship.
11. Suspension of loan payments for 6 months for borrowers in the Skills Development Fund Corporation (PTPK).
12. Replacement income cost of RM50 per day under MySalam for the B40 group undergoing probation.
13. Exemption from Account B up to RP1,500 from each Personal Pension Scheme provider without tax penalties from April to December 2020.
14. Free internet for all telecommunications service customers commencing from April 1, 2020 during the lockdown implementation.
15. And more.

During the webinar event, Mr. Ali Mahbubi quoted the Malaysian Prime Minister, Tan Sri Muhyiddin Yassin, who emphasized the slogan “Every Life is Precious.” The Prime Minister stated, “I am responsible for safeguarding the lives of my brothers and sisters. Every life is precious. Whether it’s a baby, a young person, an adult, or an elderly person, they all have value. The loss of one life due to this virus is not just a loss to a husband, wife, children, or immediate family, but also a significant loss to the country.”

Furthermore, aside from addressing the aforementioned points, numerous participants in the webinar actively engaged in the discussion by posing questions. The following are some of the inquiries put forth by the participants:

Question :

What strategy does Indonesia have for navigating future situations and conditions similar to this?

Answer :

If we take lessons from countries that have effectively managed Covid-19, such as Malaysia, which, while not yet fully successful, has seen a decrease in daily Covid-19 cases, there are several considerations to be made.

First, there needs to be a disciplined approach to the implementation of large-scale social restrictions (PSBB), rather than optional local lockdowns, on a national scale or total lockdown. It is crucial that the PSBB policy is implemented uniformly and top-down, rather than bottom-up, to prevent unaffected regions from eventually being impacted. Second, extensive rapid testing is essential, as individuals may unknowingly carry the virus, posing a risk to vulnerable individuals. Conducting only 48 rapid tests per one million people is insufficient, and Malaysia has already initiated house-to-house rapid testing. Third, the government must ensure that people’s essential needs, particularly food, are met to prevent a health crisis from escalating into a social crisis. The fear is that a social crisis, particularly hunger, could drive desperate actions.

Question :

How does Malaysia differ from Indonesia in addressing a situation and conditions like this?

Answer :

In Malaysia, the approach involves a mandatory national lockdown, as opposed to an optional one. The government conducts mandatory rapid tests and provides assistance to the public, ensuring that business sectors continue to operate and avoid laying off employees by offering salary incentives. Additionally, a compulsory moratorium is enforced as part of the culture.

Question:

Are there compelling references in the Qur’an and Hadith that can guide us in facing situations like this, drawing from the experiences of Prophet Joseph (PBUH) and Prophet Muhammad (PBUH)?

Answer :

The Prophet Muhammad (PBUH) once implemented a three-year lockdown. The concept of “lockdown” is not new and is not unrelated to Islam. Additionally, the Prophet Muhammad also prescribed a lockdown in his hadith. When asked by a companion about the plague “What is your opinion about ‘tho'un’ or plague?”, the Prophet Muhammad answered, “Verily, ‘tho’un’ is a punishment or trial for whomsoever Allah wills, but it is a mercy for the believers.” Therefore, if the ‘tho’un’ comes to your area, do not leave your house, and those outside the area should not enter it.” This indicates that we are seeking refuge from the decree of Allah. The Prophet Muhammad also promised that those who endure the lockdown with patience, seeking only the pleasure of Allah, will be rewarded like martyrs. Dying due to a plague is considered dying as a martyr.

 Question :

How do companies in Malaysia address the needs of their workers?

Answer :

The company’s approach to its workers involves reducing their salaries, but without laying off any employees, while the government provides subsidies for the workers’ salaries.

Question :

What are the potential drawbacks in Malaysia that we can learn from to prevent Indonesia from repeating the same mistakes?

Answer :

To prevent Indonesia from repeating the same mistakes as Malaysia, it's important to acknowledge that every habit has its weaknesses. Despite a 97% compliance rate, there remains a stubborn 3% still spreading the virus. There have even been cases of individuals, including an Indian national, testing positive for Covid-19 and fleeing. Additionally, many individuals have been untruthful to the authorities when questioned about their whereabouts.

Instilling traits of discipline and openness about one's health condition in all individuals is crucial. Disciplined behavior, honesty about one's health condition, and the awareness to self-quarantine are essential in breaking the chain of Covid-19 virus transmission.