Coronavirus: for Malaysia’s new leader Muhyiddin, a deadly litmus test

Muhyiddin Yassin came into power just as the coronavirus was beginning to spread through Malaysia

Keeping the economy afloat is his greatest test, but it is also a chance to silence critics and win over a doubting public

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Police officers check vehicles to enforce the coronavirus lockdown in downtown Kuala Lumpur, Malaysia. Photo: AP

Published: 9:30am, 29 Mar 2020Updated: 9:02am, 20 May 2020

Malaysian Prime Minister Muhyiddin Yassin’s first month on the job has been a tortuous one: a health epidemic, economic woes and a powerful opposition force threatening a no-confidence motion in parliament are among the crises he has been faced with.

Having come to power on the heels of a political coup that saw the shock resignation of the previous prime minister Mahathir Mohamad, the breakdown of former ruling coalition Pakatan Harapan after just 21 months of rule and the nation’s king stepping in to choose a new prime minister, Muhyiddin’s most pressing issue now is how to face down the coronavirus, which has infected more than 2,000 of his citizens, making Malaysia the worst-hit nation in Southeast Asia.

Malaysian Prime Minister Muhyiddin Yassin. Photo: DPA

With the country one week into a lockdown that will last at least another three weeks, the economy is already taking a hit as workers and employers alike struggle to cover overheads and worry about job security.

On Friday Muhyiddin announced an economic stimulus package worth 250 billion ringgit (US$57.3 billion) – an estimated 17 per cent of the GDP. That total includes an earlier slew of measures announced on February 27 by the Mahathir administration, which unveiled a 20 billion ringgit package largely aimed at the tourism industry, as well as a moratorium on loan repayments.

The latest stimulus package comes just days after the new Perikatan Nasional, or National Alliance, government announced measures such as allowing Malaysians to withdraw 500 ringgit a month from a secondary account in their Employees Provident Fund (EPF), a compulsory savings plan for private-sector employees, and an extension for student loan repayments for up to six months – moves that were criticised in some quarters as asking the people to use their own money to get through the crisis rather than easing their economic concerns.