Despite the thread of COVID-19 remained severed but many countries have started to loosen their lockdown policies and many businesses resume operation with safety protocol attached. People learned the new-normal lifestyle that change the way how we work, where we work, and the technologies that keep us connected.
What about the impact on Malaysia businesses?
Business Impact – People
Top Challenges: 32% of all large and listed companies have faced downtime in their daily operations, while 31% of SMEs have experienced delays in completing tasks and projects.
Actions being taken: Close to a third of all companies are enhancing their remote working approaches with technical and connectivity support. Large and listed companies are also placing heavy emphasis on staying connected with employees.
Intervention needed: 38% of SMEs have prioritized applications for wage subsidies, while large and listed companies have placed equal importance on staff upskilling, wage subsidies and support with internet connectivity and working tools.
“Source: COVID-19: Impact on Malaysian businesses, EY 1 Jun 2020”
In Malaysia, corporates had taken drastic changes to revamp their business strategies to meet the challenges at pandemic wave including the enhancement of technology to support WHF model, and the upskilling programme to grow their talent.
The survey conducted by EY stated, nearly half of all companies indicated that cost-cutting measures are a priority. Others include cashflow management, re-prioritizing of business activities and investments and adjusting wages or applying for wage subsidies.
What about the financial aid by Government?
From the early stage of COVID-19 till now, the Government has announced various Economic Stimulus Packages to aid the Rakyat and business community. The financial aid was budgeted to assist the business sector to alleviate the hardships brought about by the pandemic crisis.
What about Unemployment rate?
Malaysia’s July 2020 unemployment rate declined month-on-month to 4.7% from a record-high of 5.3% in May 2020 as more sectors, including the services industry, reopened due to the implementation of the nation’s recovery movement control order (RMCO) to revive the country’s economy while curbing the Covid-19 pandemic.
Such improvement in labour supply was incline with the short-term stimulus packages by government and the reopening of more economic sectors including education, social and religious activities following the RMCO.
On positive side, Covid-19 has accelerant companies to make strategic change to adapt the new-normal. It is the time to shift focus and efforts that support a return-to-work, and business transformation plan at this difficult time. Work along the ideas of operation cost cutting, resources streamlining and business digitization to fit the challenges tomorrow.
Clifford Liow
Principal Consultant | Tic Tac Toe Consulting Malaysia