Malaysia to extend lockdown, boost Covid aid: Muhyiddin

Kuala Lumpur

MALAYSIA will extend a nationwide lockdown that was originally due to end on Monday as new Covid infections are still too high, Prime Minister Muhyiddin Yassin said.

The movement restrictions will now stay in place until the country's daily caseload falls below 4,000, the official Bernama news agency reported, citing the premier.

The government will announce more comprehensive assistance programmes for all groups on Monday or Tuesday, he said during a visit to a vaccination centre in the state of Selangor.

The government will relax one measure beginning on Monday and allow eateries to operate for longer hours, Defence Minister Ismail Sabri Yaakob said in a statement on Sunday. They can open from 6am to 10pm, compared to 8am to 8pm, he said, adding that the decision was made after taking into account the views of restaurant operators.

Extending the lockdown will be an additional blow for Malaysia's economy, which the government is currently expecting to bounce back only in the last three months of the year.

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The World Bank last Wednesday slashed its 2021 growth forecast for Malaysia to 4.5 per cent from 6 per cent. The government said this month it is revising its earlier expansion estimate of 6 per cent to 7.5 per cent due to the lockdown.

The closing of all but essential sectors is costing the economy RM1 billion (S$323 million) a day, Mr Muhyiddin said earlier this month while unveiling a recovery plan.

The prime minister announced a RM40 billion package at the end of May, the government's third this year.

Malaysia's infection rate has declined below one since initial lockdown measures took effect on June 1, from a peak of 1.21 in May when daily cases topped 9,000. Still, new infections remain elevated, with the country adding 5,586 cases on Sunday alone.

Malaysia expects to transition to the second phase of its recovery plan once new daily cases drop below 4,000, 10 per cent of the population is fully vaccinated, and usage of ICU beds is at moderate capacity, Mr Muhyiddin said earlier in June. BLOOMBERG