Like China, Businesses May Still Suffer Even After Reopening Post-MCO
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Malaysia’s small- and medium-sized enterprises (SMEs) make up 98.5% of all businesses in the country, and they have been vocal about the paltry economic stimulus package. While the government has promised to review the stimulus package, businesses should probably still prepare for tougher times ahead.
Multinational companies (MNC) working closely with Malaysia’s SMEs may move elsewhere or scale-down operations, which would be another blow to the nation’s working class.
In China, retail outlets and shops quickly reopened after their quarantine period in hopes of regaining business.
However, it turns out that while businesses are in a rush to reopen, customers are opting instead to voluntarily remain indoors or continue online shopping.
After more than 90% of commercial facilities have resumed their businesses, they found “less than half of usual levels” of shoppers. The Chinese citizens are still wary and would prefer to “be safe than sorry”.
The people are also in “money-saving mode”, according to a retail-industry observer. Some have lost their jobs, taken paycuts, or fear layoffs, and reflect that anxiety onto their spending habits.
The MCO may in fact be extended past 14 April 2020, but even if it isn’t, there’s a high chance many Malaysians will choose to voluntarily cut down on social outings and visiting shopping malls.
Once the MCO is lifted, businesses will be able to resume their usual operations, but will the public resume their usual habits, pre-Covid-19?
Judging by how China’s retail sector has yet to recover, Malaysia may suffer the same fate.
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