Repeated lockdowns leaving South-east Asian businesses on edge

The 'zero Covid' approach taken by the region's governments risks undercutting economic activity instead of supporting it: report

Angela Tan

Published Fri, Jul 2, 2021 · 05:50 AM

Asean

Singapore

SOUTH-EAST Asia's "zero-Covid" approach - entailing enforcement of strict lockdowns whenever cases emerge - has cast a heavy pall on business operations across the region, and investors have taken a wait-and-see stance.

The Economist Intelligence Unit (EIU), the respected research and analysis division of Economist Group, has warned that enforcement of stringent lockdowns measures when infection cases emerge is not a sustainable route, because it could potentially undercut rather than support economic activity.

The officials in Indonesia's first Special Economic Zone (SEZ) know this all too well. Back in 2019, the management body of the Sei Mangkei SEZ fielded more than 360 investor engagements, said Mu…