Economics and social cost of movement restrictions in Malaysia: an input-output analysis

Muhamad Rias K.V. Zainuddin, Amirul Hamza Abdullah and Hakimah Nur Ahmad Hamidi

International Journal of Economic Policy in Emerging Economies, 2025, vol. 21, issue 1, 91-112

Abstract: The objective of this study is to calculate the monthly economic and social cost of the enacted movement control in Malaysia. Varying sectoral output shocks are considered in three scenarios, which are the movement control order (MCO), the conditional movement control order (CMCO), and the recovery movement control order (RMCO). This study employs input-output analysis in calculating the monthly cost of each movement control measure on the sectoral output and value-added and employment in Malaysia. Overall, the output from this study indicates that the MCO, CMCO and RMCO implementation cost the economic value-added by RM 14.3 billion, RM 7.9 billion and RM 1.8 billion. The social losses are explained by the number of job losses, where the MCO has the highest number of job losses (162,700 employees), and the low-skilled and skilled workers have the highest share. Several policy implications have been discussed in the conclusion.

Keywords: COVID-19; movement control order; economic cost; social cost; employment; input-output analysis; Malaysia. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijepee:v:21:y:2025:i:1:p:91-112

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