KUALA LUMPUR, Jan 12 — The threat to Malaysia’s economy due to a sustained spike in Covid-19 cases was the reason the Yang di-Pertuan Agong agreed to proclaim a state of Emergency, Tan Sri Muhyiddin Yassin said today.

The prime minister added that during the Emergency, the King can allow any ordinance to be made to reduce the number of Covid-19 cases, including taking over private hospitals and private properties.

"This means the government now can have more exclusive involvement and power with the private hospital sectors, to help manage the load and difficulties faced by government hospitals.

"Through this ordinance, we can get manpower help from private hospitals, more medical expertise, asets, facilities, labs and other utilities. This ordinance will help speed up affairs with private hospitals,” he said.

He said the proclamation of Emergency was made under Article 150(1) of the Federal Constitution, which reads: "If the Yang di-Pertuan Agong is satisfied that a grave emergency exists whereby the security, or the economic life, or public order in the Federation or any part thereof is threatened, he may issue a Proclamation of Emergency making therein a declaration to that effect”.

Clause (2) of the same law states that a state of Emergency can be declared before the actual occurrence of the event which threatens the security, or the economic life, or public order in any part of the country if the Yang di-Pertuan Agong is satisfied that there is imminent danger the event may occur.

The palace had earlier today released a statement saying the Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah has consented to a state of Emergency in the country until August 1, or until the current wave of Covid-19 subsides.

Meanwhile, Muhyiddin also assured that all economic activities will proceed as usual with the movement control order (MCO) SOPs.

He said bodies such as Bank Negara Malaysia, Bursa, Securities Commission and others will still continue to play a role as the country’s catalyst and regulators.

"We will ensure economy wont stop and people can go about their business as per usual. We are committed to ensure good governance in this Emergency period.

"To all stakeholders monitoring what is happening in Malaysia, I emphasise that Malaysia is open for business in facing this challenging time and, this period of Emergency will give us much needed calm and stability to focus on economy recovery and regeneration.

"We remain committed to good governance this time and we have a robust and regulatory robust system,” he said.