KUALA LUMPUR, Mar 17 — The federal government will no longer use the movement control order (MCO) nationwide as a tool against Covid-19, said Prime Minister Tan Sri Muhyiddin Yassin.

Under the new economic recovery programme Pemerkasa, Muhyiddin said the government planned to use a more targeted approach to combat the pandemic.

"The government will implement a more strategic approach based on the science and data collected and are aiming to control the spread of Covid-19 in a more targeted way.

"This is to reduce the negative effect the MCO can have on the nation’s economy. At the same time, the National Immunisation Programme is currently underway and the government may not need to implement the MCO nationwide or statewide,” Muhyiddin said today during a nationwide address.

"Instead, movement controls will only be implemented based on locality and focused on clusters.”

To continue safeguarding Malaysians’ welfare, Muhyiddin said the government is offering tax incentives for employers to make sure their employees have adequate and safe living conditions.

Under the Safe@Work initiative, the government wants employers to provide proper living quarters for their employees so that close contacts can be isolated from the rest and placed in a safe bubble until all are cleared of Covid-19.

"To encourage employers to participate in this voluntary programme, we will give them extra tax exemptions up to RM50,000, which could go to the cost of the rental for the living premises and hostels for those who register with the Ministry of International Trade and Industry and have been audited.

"Apart from that, those who have been paid for Covid-19 testing will get additional tax cuts for any expenditure made up till December 31, 2021,” he added.