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Reopening Malaysia’s economy in a new normal

Reopening Malaysia’s economy in a new normal

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The economic impacts of the coronavirus (COVID-19) pandemic on the private sector, industry and jobs is expected to be large in Malaysia. This is particularly the case for small medium enterprises (SMEs) as they constitute 98.5%% of total firms and are likely to be severely affected with less resources to absorb the shock. 

After 47 days of the Movement Control Order (MCO), most businesses were allowed to resume operations on May 4. As Malaysia’s economy emerges from the shutdown, which has been effective in arresting the spread of the coronavirus (COVID-19), the days ahead will look very different. The economy is reopening to a new normal.

We enter with a grim picture at the beginning, facing an expected economic loss of RM 63 billion from the MCO, as announced by the prime minister. Many people have lost their jobs. Most firms, both large corporates and small medium enterprises (SMEs), have not escaped unscathed, with many of them facing insolvency. The negative effects on credit markets, supply chains, and worker productivity will only dissipate gradually. 


The policy objective now is to ensure firms return to their pre-crisis production and employment levels as rapidly and safely as possible , setting the foundations for productivity-driven growth, resilience, and competitiveness over the longer term.

A detailed plan for the next phase will require close coordination between the private sector and the government. The unprecedented scale of the pandemic means that the return to work will need to be gradual and phased, and heightened caution is necessary to prevent further waves of infection. It is also important to ensure that the burden of COVID-19 prevention is not placed disproportionately on SMEs, who are already struggling to stay in business. 

The government, in recent days, has been working to provide information with Standard Operating Procedures for employees to follow social distancing norms as a means of ensuring safe work conditions. This support is especially important for SMEs as such companies are likely to have lower capacity than larger ones to scale up the kind of management response necessary and to put in place adequate mitigation measures. 

For many industries, getting employees back to offices may remain the preferred manner of work. Until effective treatment or a vaccine becomes widely available, targeted scaling up of testing to identify infections may help alleviate some of the uncertainty and lack of confidence from workers and customers as businesses seek to reopen. Support to SMEs could also include co-financing for professional cleaning of premises where there are confirmed COVID-19 cases and access to business continuity insurance.

While clear before, the current crisis has further increased the benefits that Malaysia’s SMEs could derive from using new technologies, for instance through remote work and online business platforms . Going forward, further measures should be identified to increase their levels of digitization. Subsidized or free broadband access and direct technical support could be provided to accelerate the transition to digital platforms, including business-to-consumer (B2C) and business-to-business (B2B). Renewed efforts to support workers’ reskilling and upskilling will be particularly important as will the provision of employment services that match job seekers and job openings through digital platforms.

Once businesses can safely operate, efforts should focus on boosting demand and reactivating supply chains. Adopting a broad-based fiscal stimulus consistent with available fiscal space can help lift aggregate demand. Notably, measures announced to accelerate and increase allocations for large public investment projects and programs (e.g., the East Coast Rail Link, Mass Rapid Transit 2, and the National Fiberization and Connectivity Plan) should have a positive impact on demand during construction and could benefit growth in the longer run. 

Without support, the country’s SMEs tend to be disadvantaged from accessing public procurement contracts, which may limit their capacity to benefit from the investment projects mentioned above. Hence e-procurement could also be encouraged to further level the playing field for SMEs to compete for tenders with larger companies. 

With regards to foreign direct investment, immediate efforts should focus on the retention of existing foreign investors, and the preservation of supply chains connecting foreign and domestic suppliers. With supply chains and client relations disrupted by the crisis, government agencies can help SMEs reintegrate into supply chains and find new domestic and export markets to help reduce the time to recovery.

Special attention should be placed on ensuring support for firms in the electrical and electronics industry, retail, and tourism sectors that are exposed to demand and supply shocks. This is key to preventing an exodus of investments and subsequent job losses. 

The government will need to communicate how the financial support measures for firms will evolve as the reopening phase continues. It is critical to avoid removing support measures too soon, and some key measures may have to continue even as firms restart their operations. Close dialogue with representatives of different segments of the private sector, especially SMEs, can help inform the government in their decisions.

The measures adopted and the way they are implemented should continue to reduce physical transactions or unnecessary face-to-face interaction. Measures should also be scalable and timebound, allowing the government to increase the scope of assistance provided, reduce it as the crisis subsides, and increase it again should there be new waves of the virus.

Already, the economic damage has been significant. Recovery is unlikely to be uniform, with different parts of the global economy moving at different speeds, which in turn will determine the recovery of specific sectors that are integral to global value chains. 

However, hope remains. The crisis provides not only a sense of urgency but also an opportunity to reduce Malaysia’s vulnerability to external shocks.  The response can accelerate the country’s transformation toward a high-income economy built on a stronger and more resilient and competitive private sector. 

This blog post was adapted from its original version published on The Star.
 

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War, peace and security: The pandemic’s impact on women and girls in Nepal and Sri Lanka

The impacts of COVID-19 must be incorporated into women, peace and security planning in order to improve the lives of women and girls in postwar countries…

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Nepalese girls rest for observation after receiving the Moderna vaccine for COVID-19 in Kathmandu, Nepal. (AP Photo/Niranjan Shrestha)

Attention to the pandemic’s impacts on women has largely focused on the Global North, ignoring countries like Nepal and Sri Lanka, which continue to deal with prolonged effects of war. While the Nepalese Civil War concluded in 2006 and the Sri Lankan Civil War concluded in 2009, internal conflicts continue.

As scholars of gender and war, our work focuses on the United Nations Security Council Resolution 1325 on women, peace and security. And our recently published paper examines COVID-19’s impacts on women and girls in Nepal and Sri Lanka, looking at policy responses and their repercussions on the women, peace and security agenda.

COVID-19 has disproportionately and negatively impacted women in part because most are the primary family caregivers and the pandemic has increased women’s caring duties.

This pattern is even more pronounced in war-affected countries where the compounding factors of war and the pandemic leave women generally more vulnerable. These nations exist at the margins of the international system and suffer from what the World Bank terms “fragility, conflict and violence.”

Women, labour and gender-based violence

Gendered labour precarity is not new to Nepal or Sri Lanka and the pandemic has only eroded women’s already poor economic prospects.

Prior to COVID-19, Tharshani (pseudonym), a Sri Lankan mother of three and head of her household, was able to make ends meet. But when the pandemic hit, lockdowns prevented Tharshani from selling the chickens she raises for market. She was forced to take loans from her neighbours and her family had to skip meals.

Some 1.7 million women in Sri Lanka work in the informal sector, where no state employment protections exist and not working means no wages. COVID-19 is exacerbating women’s struggles with poverty and forcing them to take on debilitating debts.

Although Sri Lankan men also face increased labour precarity, due to gender discrimination and sexism in the job market, women are forced into the informal sector — the jobs hardest hit by the pandemic.

Two women sit in chairs, wearing face masks
Sri Lankan women chat after getting inoculated against the coronavirus in Colombo, Sri Lanka, in August 2021. (AP Photo/Eranga Jayawardena)

The pandemic has also led to women and girls facing increased gender-based violence.

In Nepal, between March 2020 and June 2021, there was an increase in cases of gender-based violence. Over 1,750 incidents were reported in the media, of which rape and sexual assault represented 82 per cent. Pandemic lockdowns also led to new vulnerabilities for women who sought out quarantine shelters — in Lamkichuha, Nepal, a woman was allegedly gang-raped at a quarantine facility.

Gender-based violence is more prevalent among women and girls of low caste in Nepal and the pandemic has made it worse. The Samata Foundation reported 90 cases of gender-based violence faced by women and girls of low caste within the first six months of the pandemic.

What’s next?

While COVID-19 recovery efforts are generally focused on preparing for future pandemics and economic recovery, the women, peace and security agenda can also address the needs of some of those most marginalized when it comes to COVID-19 recovery.

The women, peace and security agenda promotes women’s participation in peace and security matters with a focus on helping women facing violent conflict. By incorporating women’s perspectives, issues and concerns in the context of COVID-19 recovery, policies and activities can help address issues that disproportionately impact most women in war-affected countries.

These issues are: precarious gendered labor market, a surge in care work, the rising feminization of poverty and increased gender-based violence.

A girl in a face mask stares out a window
The women, peace and security agenda can help address the needs of some of those most marginalized. (AP Photo/Niranjan Shrestha)

Policies could include efforts to create living-wage jobs for women that come with state benefits, emergency funding for women heads of household (so they can avoid taking out predatory loans) and increasing the number of resources (like shelters and legal services) for women experiencing domestic gender-based violence.

The impacts of COVID-19 must be incorporated into women, peace and security planning in order to achieve the agenda’s aims of improving the lives of women and girls in postwar countries like Nepal and Sri Lanka.

Luna KC is a Postdoctoral Researcher at the Research Network-Women Peace Security, McGill University. This project is funded by the Government of Canada Mobilizing Insights in Defence and Security (MINDS) program.

Crystal Whetstone does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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ThreatX raises a fresh round of capital to protect APIs and web apps

ThreatX, a vendor selling API protection services to mainly enterprise clients, today announced that it raised $30 million in a Series B funding round…

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ThreatX, a vendor selling API protection services to mainly enterprise clients, today announced that it raised $30 million in a Series B funding round led by Harbert Growth Partners with participation from Vistara Growth, .406 Ventures, Grotech Ventures and Access Venture Partners. With the new cash, which brings ThreatX’s total raised to $52 million, CEO Gene Fay tells TechCrunch that ThreatX will “accelerate” investments in platform development while scaling sales and marketing initiatives.

The raise highlights investors’ continued confidence in cybersecurity businesses to net returns, despite the current macroeconomic woes. While there’s some evidence that fundraising has begun to slow down, cybersecurity startups raised $2.4 billion between January and June, according to PitchBook. Companies that defend APIs from outside attack have been particularly fruitful, lately, with startups such as Ghost Security and Corsha raising tens of millions of dollars in capital.

ThreatX was co-founded in 2014 by Bret Settle and Andrius Useckas. Prior to starting ThreatX, Settle was VP of enterprise architecture at BMC; Useckas had worked with Bret at BMC, where he was an enterprise security architect. The two were also colleagues at Corporate Express, which was acquired by Staples in 2008, where Useckas came in as an external pen tester.

“Over the course of working together for several years, Settle and Andrius saw a massive gap in the market in terms of solutions to protect BMC’s application portfolio,” said Fay, who was appointed CEO of ThreatX in 2020. “The products available required endless tuning and rule-writing and returned piles of false positives. Through all of this, the notion of innovating in the space — and ThreatX — was born.”

ThreatX offers API protection, bot and DDoS mitigation and traditional web application firewalls (WAF) for first- and third-party web apps. The platform builds a profile of threat actors, leveraging a detection and correlation engine to show which actors are actively attacking and which might pose the greatest threat.

Image Credits: ThreatX

Fay sees ThreatX competing primarily with two categories of cybersecurity vendors. The first are newer API observability tools such as Salt Security and Noname. The second are bot management platforms like Cequence and WAF players such as Akamai, F5 and Imperva, which generally rely on applying rules-based protection to web apps and APIs.

Fay argues that the former group — the bot management and WAF vendors —  tend to offer capabilities that came together through acquisition, so they’re less integrated. As for the latter — the API observability tools — Fay asserts that they often don’t offer web app or bot protection and require offline analysis, which precludes the ability to block attacks in real time.

“The bottom line is that to protect APIs, you must be able to block attacks in real time,” Fay said. “Grabbing data through observation and analyzing it after the fact may be interesting, but it does little from an immediate security standpoint. For our customers, the number one priority is protection — in real time, all the time. That is the value proposition we offer to our customers.”

Real-time protection or no, it’s true that API attacks are a growing cyber threat. Gartner predicts that by 2022, API attacks will become the most frequent attack vector, causing data breaches for enterprise web software.

“The COVID-19 pandemic accelerated use of APIs as companies looked at how they might provide new services to deliver value — and derive revenue — from customers,” Fay added. “As people — both as consumers and professionals — turned to technology to get more done, reliance on both APIs and web applications grew substantially. That, in turn, has increased the need for security in this context — which presents a ton of opportunity for ThreatX.

While Fay demurred when asked about financials, he said that ThreatX currently has “more than” 100 customers. He declined to name any names.

When reached for comment, Harbert Growth Partners general partner Tom Roberts said in a statement:

APIs are a strategic priority for businesses of all sizes and have become a primary target for threat actors. Organizations are now contending with constant threats and require API and web application protection capabilities that can identify and respond to attacks in real time. This need for “real-time attack protection” is driving the API security market toward an aggressive pivot. Based on ThreatX’s strong customer traction and unique product capabilities, we believe the company is well positioned to meet this shift head-on as a valuable partner to businesses looking to secure their attack surface.

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CDC Announces Overhaul After Botching Pandemic

CDC Announces Overhaul After Botching Pandemic

After more than two years of missteps and backpedaling over Covid-19 guidance that had a profound…

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CDC Announces Overhaul After Botching Pandemic

After more than two years of missteps and backpedaling over Covid-19 guidance that had a profound effect on Americans' lives, the Centers for Disease Control (CDC) announced on Wednesday that the agency would undergo a complete overhaul - and will revamp everything from its operations to its culture after failing to meet expectations during the pandemic, Bloomberg reports.

Director Rochelle Walensky began telling CDC’s staff Wednesday that the changes are aimed at replacing the agency’s insular, academic culture with one that’s quicker to respond to emergencies. That will mean more rapidly turning research into health recommendations, working better with other parts of government and improving how the CDC communicates with the public. -Bloomberg

"For 75 years, CDC and public health have been preparing for Covid-19, and in our big moment, our performance did not reliably meet expectations," said Director Rochelle Walensky. "I want us all to do better and it starts with CDC leading the way.  My goal is a new, public health action-oriented culture at CDC that emphasizes accountability, collaboration, communication and timeliness."

As Bloomberg further notes, The agency has been faulted for an inadequate testing and surveillance program, for not collecting important data on how the virus was spreading and how vaccines were performing, for being too under the influence of the White House during the Trump administration and for repeated challenges communicating to a politically divided and sometimes skeptical public."

A few examples:

Walensky made the announcement in a Wednesday morning video message to CDC staff, where she said that the US has 'significant work to do' in order to improve the country's public health defenses.

"Prior to this pandemic, our infrastructure within the agency and around the country was too frail to tackle what we confronted with Covid-19," she said. "To be frank, we are responsible for some pretty dramatic, pretty public mistakes — from testing, to data, to communications."

The CDC overhaul comes on the heels of the agency admitting that "unvaccinated people now have the same guidance as vaccinated people" - and that those exposed to COVID-19 are no longer required to quarantine.

Tyler Durden Wed, 08/17/2022 - 12:22

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