PUTRAJAYA: State economic recovery committees (NRCs) will be formed following the approval by the Cabinet for these committees to help the Federal Government expedite the country’s economic recovery, says Tan Sri Muhyiddin Yassin.

       The National Recovery Council (NRC) chairman said the committees are relevant despite the country’s economic improvement and the lifting of Covid-19 restrictions.

       The state entities are important to speed up the national economic recovery process, he added.

       “They (the council and state committees) are still relevant as it relates to recovery.

       “This responsibility should not be solely on the Federal Government’s shoulders but also on the state’s.

       “This is because local authorities have wide powers to resolve localised issues,” he said after chairing the National Recovery Council here yesterday.

       He said the Cabinet has approved the proposal in principle and only requires the nod from Prime Minister Datuk Seri Ismail Sabri Yaakob for its implementation.

       “The council and Cabinet have approved the proposal and all the Prime Minister needs to do is to sign the letter,” he added.

       The National Recovery Plan was launched by Muhyiddin in August last year when he was the prime minister.

       The government under Ismail Sabri announced on April 1 this year that the nation would move into the “transition to endemicity” phase. This saw the lifting of Covid-19 restrictions and reopening of more economic sectors and international borders.

       On another matter, Muhyiddin said the council discussed the war in Ukraine and the prolonged Covid-19 lockdown in China due to the Omicron variant, which have affected food security and the supply chain.

       He said the council acknowledged these challenges had resulted in higher fuel and importation costs, particularly for food items.

       He added that the Omicron variant had affected Chinese tourist arrivals while the closure of certain air routes due to the conflict has also affected travel.

       “Before the pandemic, some three million tourists from China visited Malaysia, but they have yet to return,” he said.

       Earlier, Muhyiddin said the nation’s economic recovery fared better than expected.

       He said it was initially anticipated that the nation would achieve 3.6% economic growth in the first quarter of this year, but this grew to 5%.

       He added that unemployment remained low at 4.1% while inflation was moderate at 2.2%.

       Muhyiddin also announced that the council would hold its inaugural conference at the end of the year where it would present plans on mapping out the country’s recovery.