South Africa is officially in a state of disaster following President Cyril Ramaphosa's address on Sunday, casting doubt on the rest of the PSL season.
The League is meeting this afternoon to decide what to do, but Palacios has already closed his own Augusto Palacios Apprentice Academy for safety reasons.
"We are closed also, for example the development," Palacios tells snl24.com/kickoff.
"I need to stay at home, work what I need to work, prepare what I need to prepare, focus what I need to focus. But I can't go to the mall, I can't go to the people, it's impossible [laughs].
"As for the PSL [Pirates academy] we need to follow the office. But my academy, I closed already yesterday. I'm closing until the 28 [March] my academy. Ja I closed it last night after the President's speech.
"Because remember the school holidays also starts on the 20, until the 31st. Now according to the government it's to close until the 14th when Easter finishes."
Palacios believes the PSL will suspend its fixtures for at least two weeks rather than take the risk of playing behind closed doors, as that would hit the clubs hard in their pockets.
"Remember, we need to look at the situation, also the qualification game for CAF and FIFA is closed," the veteran coach adds.
"So I don't think it will close for long [the league] because normally we are talking about two weeks. Now maybe they are going to do it until the end of the month, or because it can't be played with closed doors because it will be losing money you see.
"The President says not more than 100 people, and there is nothing that we can do, nothing. All the countries that have more crowds than us like Italy, England and Spain are closing. Same with us, we need to prevent.
"Because playing behind doors will mean the club is losing money. Now I think for my observation for the league, I think it's going to close for two weeks.
"But remember, the teams need to continue training its players because the players can't stop. The players might as well train at home. He can't go tomMall, he can't go to any place.
"And to the PSL and my poor opinion, now we need to use a marathon now. What is a marathon? You will play Saturday, Wednesday, Saturday or Sunday or Tuesday.
"We need to play three games in the week. We need to play three games in a week to cover the games, we can't stop."