BUSINESSES in Sabah are experiencing a second downturn just as they were picking up, as the number of Covid-19 infections in the state continue to grow.
 
With the lifting of the improvement control order (MCO) in early June, things were looking up for commerce and industry and expected to get even better by the end of the year.

This was upended by a spike in coronavirus cases in the state and the various sectors are once again bracing for hard times.

Sabah is home to 11 active clusters – Benteng Lahad Datu, Laut, Pulau, Selamat, Bakau, Kuarters, Bangau-Bangau, Buang Sayang, Kampung Sakong, Jalan Bomba and Jalan Utara.

The outbreak is most severe in Tawau with 332 cases, followed by Semporna (351), Lahad Datu (145) and Kunak (54). 

In total, Sabah has logged 953 cases and four deaths, prompting the government to put four districts under an enhanced MCO.

Malaysia Association of Tour and Travel Agents (Matta) Sabah Chapter manager Kennedy Fung said the local tourism sector had showed recovery in June and July, when many visitors from the peninsula arrived to enjoy the state’s island beaches.

Industry players were expecting the positive trend to last until the end of the year.

The second wave of infections in Sabah has dashed such hopes as bookings for September and October are cancelled.

“In July and August, many tourists came to vacation in Sabah, especially on the islands. Some even came for hiking trips. Many tourist destinations were full,” Fung said.

“There were bookings up until November and December, but now that the outbreak has worsened here, 90% of September and October bookings have been cancelled. Whether the same will happen for November and December remains to be seen.”

He said local tourism operators had taken the increased number of tourists in Sabah as a good sign but the outbreak had dashed their hopes and turned their outlook bleak for the coming months.

“Some tourists have asked for refunds while others have postponed their trips.

“Meanwhile a man had climbed Mount Kinabalu 11 days before he tested positive for the virus, and the trail is now closed for 14 days, resulting in postponed bookings,” he said.

Fung said many of Matta Sabah’s 500 members had closed shop.  Some had simply let their licences expire.

At the same time, new businesses have sprung up so the organisation cannot give a proper estimation of the losses suffered in the industry.

Tawau Food and Beverage Operators Association president Chau Oi Keong said business had fallen to 30% after Tawau became a Covid-19 hotspot, with the streets empty.

“During the first MCO, about 30% of coffeeshops had to shut down temporarily and owners had to rely on takeaway and deliveries to sustain their business.

“During the RMCO, business began to recover to around 60% to 70%. Now with the EMCO, Tawau coffeeshops jumped out of the frying pan and into the fire,” Chau said.

He said when the number of new cases started increasing, operators had cut the number of tables, with some even reverting back to takeaways only.

“Other than that, some supermarkets are now closing early, and some pharmacies no longer allow customers to browse in the shop, only allowing them to purchase items through the cashiers,” Chau said.

He said a food court was also closed after a patron tested positive for the coronavirus. The owner had immediately closed the premises for disinfection and told workers to quarantine themselves.

“Now Tawau is a ghost town,” Chau said.

Sabah SME Association president Foo Ngee Kee said the hardest hit businesses are hotels and tourism operations, with many hotels “burning” rooms, or having at least 15% of rooms unoccupied.

Other than the four districts under EMCO, Foo said other areas in Sabah have also been affected as many peninsula and Sarawak tourists had gone to the state for vacation.

They contributed to the state’s many businesses including hotels, but now, even business travellers would rather not stay.

For the services and the restaurant sector, he said, business had recovered to 70% to 80% just before the outbreak got worse, and now, there are even fewer takeaway orders.

“Even noodle factories are being affected due to the lesser demand. Fortunately the government had extended the wage subsidy programme by three months so this will temporarily alleviate some issues faced by owners.

“Regardless, we hope the government and the Health Ministry can quickly bring the outbreak under control so we can get back to business again,” Foo said. – September 30, 2020.